1. What is KuCoin Index?
KuCoin Index is an integrated index developed by KuCoin’s financial analysis team to measure the overall market performance of mainstream coins. This is obtained through weighted average calculation according to the latest prices of USD pairs on the mainstream fiat exchanges.
2. What is included in the Index?
KuCoin Index includes BTC index, ETH index, LTC index, and XRP index.
3. What is the quote currency of the Index?
The quote currency of KuCoin is USD.
4. What are the constituent exchanges of the Index?
KuCoin selects the USD pairs of Coinbase, Bitstamp, Kraken, Gemini, Bittrex, and Liquid as the index constituents.
5. How do the constituents of KuCoin Index conduct weighted operation?
KuCoin Index is operated by weighing the trading volume of index constituent pairs, which helps users track the market prices.
6. How are KuCoin Index weights calculated?
To guarantee the validity of base period data and avoid errors, KuCoin will correct missing trading volume data in the base period according to the average of the valid data. The weights of constituent exchanges will be obtained according to the corrected data and by weighted average calculation.
7. How are abnormal price fluctuations handled?
The absolute value of the upper limit of abnormal price fluctuation is set to be 50%/s. If a pair reaches or exceeds the upper limit of 50%, the relevant exchange will be eliminated. The weights will be reallocated for the remaining exchanges, and the latest index price will be calculated. If ≥3 pairs in a constituent exceed the absolute value of 50%, the constituent will not be eliminated.
8. What happens when the pair price of an exchange cannot be obtained?
When a pair price cannot be obtained, the weights will be reallocated for the remaining pairs and the latest index price will be calculated.
9. How often is the Index released?
KuCoin Index is released once every 5s.
10. How is the closing price of the index determined on a day-to-day basis?
Like other pairs, the closing price of any given day is the index price at 00:00 GMT.
11. How often is KuCoin Index adjusted?
KuCoin Index is adjusted by quarter. The index on the first natural day of every quarter will be updated according to the historical transaction data of the previous quarter and recalculated and adjusted.
12. How is the mechanism for KuCoin Index adjustment set?
For KuCoin Index, the weight of each coin will be first determined based on the daily trading volume in the past quarter. The adjustment coefficient for the current quarter will be determined according to the trading volume of constituents in the previous period.
13. Is KuCoin Index authoritative?
Unlike the general digital currency indices, the more stable and representative fiat transactions are selected as a reference for KuCoin Index, making the index more comprehensively representative of exchange products and the entire cryptocurrency market.