1. Why Are There Two Prices?
Crypto futures exchanges display both the last price and the mark price. Liquidation is based on mark price.
2. What Is Mark Price?
📊 Definition
Mark price = spot index price + a decaying funding-rate component
It is calculated using spot prices from multiple exchanges.
The purpose is to prevent unfair liquidation caused by price manipulation on one exchange.
3. Why Does It Matter?
- Liquidation uses mark price — A spike or crash in last price alone does not trigger liquidation if mark price remains stable
- It helps prevent unfair liquidation from price manipulation or scam wicks on a single exchange
- The guide describes P&L calculations as using the last price
4. Practical Precautions
⚠️ Caution
• A position profitable at the last price may show a loss at mark price
• Always check liquidation against the mark price
• Mark price and last price may diverge during abrupt market moves
5. AI's Precise Price Management
NOONOO TRADING tracks mark price precisely and automatically manages positions before liquidation.