Final Reference Price

The final reference price is the specific value used to calculate the settlement of a derivative contract at expiration. This price is typically derived from an index that averages the spot price of the underlying asset across multiple major exchanges over a set period.

By using an averaged index rather than a single exchange price, the protocol reduces the impact of localized price spikes or potential market manipulation on a single venue. This ensures that the settlement process is fair and resistant to adversarial behavior.

The final reference price is a critical parameter, as it dictates the final payout for all participants holding open positions, making its calculation methodology a core component of the contract's risk management framework.