Mark Price and Oracle Price

TxFlow uses two reference prices to ensure market integrity and prevent manipulation.

Price	Source	Used for
Oracle Price	Weighted median of spot prices from major CEXs	Funding rate calculation, slippage protection
Mark Price	Oracle Price + 30-second smoothed premium	Liquidations, unrealized PnL, margin, TP/SL triggers

Oracle Price

The Oracle Price is the external spot reference for a market. It is fully independent of TxFlow's order book, making it highly resistant to manipulation.

Calculation:

Oracle Price = Weighted Median(P₁, P₂, ..., Pₙ)

Where P₁...Pₙ are spot mid-prices from major CEXs (e.g., Binance, Coinbase, OKX, Kraken), weighted by each exchange's trading volume and reliability.

• Update frequency: ~every 3 seconds, published by validators

• Why weighted median? Unlike a simple average, the median is robust against outliers — a single exchange reporting an erroneous price cannot skew the result.

Mark Price

The Mark Price is TxFlow's fair-value estimate of the perpetual contract. It is derived from the Oracle Price plus a smoothed market premium that filters out short-term noise.

Calculation:

Mark Price = Oracle Price + Average Premium

Where Average Premium is the moving average of:

Average Premium = Average of ((bid 1 + ask 1) ÷ 2 − Oracle Price)

Sampled every second over a 30-second window (= 30 samples).

• Update frequency: ~every 3 seconds, synced with Oracle updates

• Why include premium? It reflects TxFlow's market sentiment relative to spot. Smoothing over 30 seconds prevents manipulation via short-term order book spoofing.

When each price is used

Use Case	Price Used	Reason
Liquidations	Mark Price	Prevents manipulation; smooths volatility
Unrealized PnL	Mark Price	Fair valuation consistent with liquidation logic
Margin requirements	Mark Price	Consistent with liquidation logic
Funding rate calculation	Oracle Price	Independent reference; prevents funding manipulation
Slippage protection (market orders)	Oracle Price	Detects extreme execution prices vs. external reference
TP/SL triggers	Mark Price	Consistent with PnL calculations

Related Pages

Pages	Description
Liquidation	Detailed liquidation mechanics
Funding	Funding fees