# USDT-Margined Futures Index Price

KuCoin's futures index price is derived from multiple exchanges. It's the weighted average of spot prices from these exchanges, where the weight = pending order volume of a single exchange / the total pending order volume of multiple exchanges.

The pending order volume is calculated based on the tier-1 and tier-2 buy and sell orders from the index component exchanges, weighted against the order price to arrive at the final index price. For example, at a certain moment, the BTC/USDT spot trading order volume in Exchange X is:

 Price Volume Buy 1 40100 50 Sell 1 40150 200 Buy 2 40000 80 Sell 2 40200 150

The final index price for Exchange X is

(Buy 1 Price × Sell 1 Volume + Sell 1 Price × Buy 1 Volume + Buy 2 Price × Sell 2 Volume + Sell 2 Price × Buy 2 Volume) / (Buy 1 Volume + Sell 1 Volume + Buy 2 Volume + Sell 2 Volume)

= (40100 × 200 + 40150 × 50 + 40000 × 150 + 40200 × 80) / (50 + 200 + 80 + 150) = 40090.625

The index price for each exchange in the index composition is calculated using this method. Then, the total pending order volume of each exchange is weighted against the total pending order volume of all configured exchanges to determine the final index price. For instance, for the BTC/USDT futures configured with 3 exchanges, each exchange's index price and order volume are as follows:

 Exchange Index Price Total Volume of Buy 1/Buy 2/Sell 1/Sell 2 Orders x 40100 50 y 40150 200 z 40000 80

The final index price is

(40090 × 480 + 40200 × 560 + 40500 × 370) / (480 + 560 + 370) = 40241.2765957

Notes: If an exchange's index price deviates more than 5% from the final index price, it will be excluded from the index calculation.

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