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What Is Mark Price in Crypto Futures?

Why exchanges liquidate on mark price, not last price, and how it protects you from being wicked out by a thin order book.

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Last price vs mark price

The last price is simply the most recent trade on that exchange. The mark price is a fairer reference — usually built from an index of several spot markets plus a funding basis — that smooths out single-exchange spikes.

Why it matters

Exchanges calculate your unrealised PnL and your liquidation against the mark price, not the last price. This protects you from being liquidated by a brief wick on a thin book that does not reflect the true market.

What to watch

In fast markets the last price can spike well past the mark price. Your position is judged on the mark, so check it — not the flashing last price — when you are near your liquidation level.

FAQ

Why do exchanges use mark price for liquidation?

Mark price is an index-based fair value that smooths out single-exchange spikes, so a brief wick on a thin order book cannot wrongly liquidate a healthy position.

Is mark price the same as last price?

No. Last price is the most recent trade on that exchange; mark price is a fairer index-based value used to calculate PnL and liquidations.

For information only — not financial advice. Explore the live data on the markets hub.