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The Mark Price is the fair reference price used by Hotstuff for unrealized P&L, margin calculations, and liquidations. It is derived from multiple market data sources and pricing safeguards to provide a robust estimate of market value while reducing the impact of temporary price dislocations, low liquidity, and manipulation attempts. Hotstuff determines the Mark Price using a mark-to-market model based on:
  • Index Price
  • Hotstuff order book data
  • External perpetual market prices
To reduce short-term noise, Hotstuff computes a 150-second EMA of the difference between the market mid price and the Index Price. This allows the Mark Price to follow sustained market movements while filtering temporary dislocations. The final Mark Price is derived from multiple independent pricing signals and bounded around the Index Price to prevent excessive deviations during periods of low liquidity or heightened volatility.

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Trading Bandwidth

Trades are restricted to a predefined price band around the fair market price. For most markets, the bandwidth is calculated using the Index Price and the 150-second EMA of the difference between the market mid price and the Index Price. The resulting trading range is bounded by a maximum deviation of ±7.5% from the Index Price. For specific asset classes:
  • RWA Markets: ±3% from the Index Price
  • Pre-IPO Markets: ±20% from the Index Price
Orders outside the allowed Trading Bandwidth will be rejected.