> For the complete documentation index, see [llms.txt](https://pacifica.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pacifica.gitbook.io/docs/trading-on-pacifica/contract-specifications/oracle-price-and-mark-price.md).

# Oracle Price & Mark Price

Pacifica’s perpetual contracts use a decentralized Oracle Price to accurately value positions and determine funding rate and is a component of Mark Price. This Oracle Price protects traders by reducing manipulation risks and ensuring market stability. Mark Price is used for liquidations, margin requirements and Unrealized PnL.

### Oracle Price Calculation

The oracle price is updated every 3 seconds and calculated as a weighted average of USDT denominated prices from major exchanges.

<table><thead><tr><th width="158">CEX</th><th>Weights</th></tr></thead><tbody><tr><td>Binance</td><td>2</td></tr><tr><td>OKX</td><td>1</td></tr><tr><td>Bybit</td><td>1</td></tr><tr><td>Hyperliquid</td><td>1</td></tr></tbody></table>

### Uses of Oracle Price on Pacifica

The Oracle Price is crucial for several Pacifica exchange operations:

* Funding Rates: Calculations rely on the Oracle Price to maintain alignment with spot markets.
* Mark Price Calculation: Oracle price serves as a component of Mark Price to prevent market manipulation and ensure the accuracy of settlements.

### Uses of Mark Price on Pacifica

The Mark Price is the median value of:\
1\. Oracle (spot) price\
2\. The median of best bid, best ask, and last trade on Pacifica\
3\. Perpetual price from major exchanges

The Mark Price is used for:

* Liquidation Calculations: By using the median value of the 3 Mark Price components, Pacifica ensures fair and accurate liquidations.
* Margin Requirements: Both initial and maintenance margins are determined using the Mark Price.
* Unrealized PnL: Open positions are marked-to-market using the Mark Price.

### Transparency & Reliability

Pacifica provides transparent and verifiable Oracle Prices available directly through our trading interface or via API endpoints, ensuring trust and accountability.

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For further details or technical questions, refer to our [API documentation](/docs/api-documentation/api.md) or contact our support via [Contact Us](/docs/other/contact-us.md).