KCEX Index Price Guide: Calculation Method, Index Components, and Price Protection

The index price is an important reference price in perpetual futures trading. It is generally calculated using the prices of the underlying asset from multiple major spot exchanges based on specified weights, reflecting a relatively stable and fair market price. This article explains the meaning of the KCEX index price, its calculation formula, index components and weighting mechanism, abnormal price protection rules, and how to view the index price and its components, helping you better understand the pricing mechanism of KCEX perpetual futures.

1. What Is the Index Price?

The index price is the weighted average price of the underlying asset across major spot exchanges. It reflects the actual market value of the futures and is continuously updated as the spot price of the underlying asset changes. The index price provides a more stable price reference and helps reduce risks caused by price volatility and market manipulation.

The index prices of KCEX USDT-M and USDC-M futures use the spot prices of the underlying asset from major exchanges as index sources, including but not limited to KCEX, Binance, OKX, Bybit, Bitget, MEXC, and Gate.io. The specific index components for each trading pair can be viewed on the Index Price page.

2. Index Price Calculation

KCEX calculates the index price using data from multiple major exchanges to ensure the accuracy of the final result. The calculation process is as follows:

(1) Obtain the latest traded price of each index component trading pair for each cryptocurrency in real time;

(2) Calculate and update the index price every second.

Index Price Formula:

Index Price = (Weight Percentage of Exchange A × Spot Price of the Underlying Asset on Exchange A) + (Weight Percentage of Exchange B × Spot Price of the Underlying Asset on Exchange B) + … + (Weight Percentage of Exchange N × Spot Price of the Underlying Asset on Exchange N)

Where:

• Weight Percentage of Exchange i = Weight of Exchange i ÷ Total Weight
• Total Weight = Weight of Exchange A + Weight of Exchange B + … + Weight of Exchange N

Please note that KCEX may update the index components and their weights from time to time. In the event of extreme market conditions or abnormal price deviations, KCEX may implement additional protective measures, including but not limited to changing the index components and weights without prior notice.

Note: To ensure the fairness of the index price, KCEX has also established the following Price Protection rules:

• Removal of Delayed Data: If an exchange’s market data remains delayed for an extended period or its prices deviate from the market, the exchange’s price data will be excluded from the calculation. If the quality of the excluded exchange’s data returns to normal, it will be included in the calculation again.
• Price Deviation Protection: If the spot price on an exchange deviates by more than ±1% from the median price across all exchanges, KCEX will apply Price Protection and directly exclude that exchange’s price. This algorithm will not apply when fewer than three exchange prices are available for the underlying asset. Under extreme market conditions, the platform may adjust the median deviation coefficient for certain trading pairs or may not be subject to this arrangement.

3. How to View the Index Price and Index Components

(1) View the Index Price

You can view the latest index price of the current futures directly in the Market Overview section of the futures trading page.

(2) View Index Components

Go to Futures Information > Index Price from the menu bar to access the Index Price page. Search for the relevant trading pair to view the index price candlestick chart, the component exchanges included in the index, and their corresponding latest spot prices.

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