Release of P2P Trading Advertising Index Price Strategy
Advertisers can reduce losses caused by market fluctuations by setting a premium on the Index Price to adjust for advertising costs. Therefore, in order to better serve advertisers, we have updated our price sources to obtain a more stable Price Index.
Price Indexes have been updated for: BTC, ETH, and EOS.
The Price Index is a comprehensive market reference price. The Price Index is obtained by referring to prices reported by a group of major spot exchanges and their weighted average trading volumes.The reference spot exchanges include: Bitfinex, Binance, Huobi, OKEX, Bittrex, and HitBTC.
We also take additional protective measures to avoid poor market performance due to disruptions in spot exchange price reporting or connectivity issues.These protective measures are as follows:
- Individual price source deviation: When the latest price on a certain exchange deviates from the median price of all price sources by more than 5%, the weight of the price from that exchange will be set to zero.
- Multiple price source deviation: When the latest price on more than one exchange deviates by more than 5%, the median average of all price sources will be used to replace their weighted averages and used as the market reference price.
- Exchange connectivity issues: If we are unable to access data from an exchange, and trading data for the exchange was updated within the last 10 seconds, we can obtain price data from the most recent results and use this to calculate the Price Index.
If trading data was not updated within the last 10 seconds, the weight of that exchange will be set to zero when calculating the weighted average.
The Price Index can be regarded as a Fair Spot Price. The advertising price is calculated using the formula: Trading price = Current Index Price × Conversion ratio × Price fluctuation index.
The Index Price is updated every 1 minute. If the service load increases or API response speeds slow down, it may take longer to complete this process.