About Last trade protection

Last trade protection is a method similar to simple last trade markup, but with some protections to ensure users are not exposed to unwanted liquidations.

First, a price range is calculated, which is a maintenance margin ratio range (ie, plus or minus 0.5 maintenance margin ratio) centered on the previous mark price (ie, the fair price).

The mark price is equal to the last price, but only within this price range created by the fair price.

If the price range moves, the mark price will remain the same.

The mark price can move towards the price range, but not away from it.

For API consumers, this tagging method is used for product sources and is called “Last Price Protected”.

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