> For the complete documentation index, see [llms.txt](https://whitepaper.nomoex.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.nomoex.com/our-product/nomodex/overview-of-perpetual-futures/mark-price.md).

# Mark Price

**What is a Marked Price?** 

To enhance market stability and mitigate unnecessary forced liquidations during periods of abnormal volatility, we employ the marked price for calculating users' unrealized profits and losses, as well as triggering forced position reductions.

**Marked Price Algorithm** 

Marked Price = Median (Latest Price, Reasonable Price, Moving Average Price)

The marked price incorporates both the spot index price and the moving average of the basis deviation. The moving average mechanism smooths out short-term contract price fluctuations, thereby reducing unnecessary forced liquidations caused by abnormal price movements.