Perpetual Index Price

The perpetual index price is a reference price used to calculate the funding rate for a perpetual swap contract. It is typically derived from a basket of spot prices from various exchanges to ensure it is robust and difficult to manipulate.

The index price serves as the benchmark against which the perpetual contract price is compared. Discrepancies between the perpetual price and the index price determine the direction and magnitude of the funding rate.

It is a foundational element of perpetual swap architecture. Maintaining a reliable index is crucial for market integrity.