The Mark Price is the value used to determine the fair price of an asset in a perpetual futures contract.
The Mark Price is the price you see displayed on charts within the Omni trading interface.
Why Mark Price Matters
The Mark Price is the primary reference point for the health of your Variational portfolio. It is used for several critical calculations, including:
Unrealized PnL (UPnL): Your unrealized profit and loss are calculated based on the difference between entry price and current Mark Price.
Margin Calculations: Omni uses the Mark Price to determine how much leverage you are currently using, and how much is available for new trades.
Liquidations: Liquidations are triggered when the Mark Price reaches your position’s liquidation price.
How is Mark Price Determined
The Mark Price is derived from a combination of:
Index Price: The underlying asset’s global spot price.
Additional Basis Data: This includes current funding rates and the current OLP risk profile.
Mark Prices & Trading on Omni
1. Triggering TP/SL Orders
When setting TP/SL orders, you can choose the Mark Price as your trigger. This ensures that your order executes at the best possible quote when the mark price crosses the trigger price, optimal for users who prioritize exiting positions when prices reach a certain level, over the order being filled at the exact trigger price.
2. Defining Slippage
On Omni, Slippage is specifically defined as the difference between the Mark Price and the Quoted Price (the actual price at which your trade executes).
3. The Role in Funding Rates
The Mark Price is a fundamental aspect of the Funding Rate mechanism. Because perpetual contracts have no expiry date, funding rates are used to create a financial incentive that ensures the Mark Price stays as close as possible to the Index Price.