Index Price Oracle

Index prices represent the fair market value of the underlying assets traded on Katana Perps. They are used to calculate funding payments, determine liquidation thresholds, and provide a reference point for conditional order triggers. Accurate, reliable index pricing is critical to the integrity of the platform.

Primary Oracle: Chainlink

Katana Perps uses Chainlink as its primary source of index price data. Chainlink provides high-frequency, low-latency price feeds sourced from a decentralized network of first-party data providers, including major trading firms and exchanges. Chainlink price data is verified on-chain by the Katana Perps exchange smart contract.

Fallback: Internal Index Pricing

Katana Perps also operates a first-party index price collection service for redundancy. If Chainlink data becomes unavailable or stale, the platform automatically falls back to its internal pricing system. All internally collected prices are signed in hardware at the point of collection and verified on-chain by the exchange smart contract, ensuring data integrity from source to settlement.

Funding Rate Calculation

The funding rate is derived from the relationship between the perpetual contract's order book price and the index price. Katana Perps uses the following approach:

• Impact prices — The impact bid price and impact ask price are calculated as the average execution price of market-selling and market-buying a defined impact notional value through sampled order book snapshots.

• Time-weighted averaging — Impact price samples are linearly time-weighted over a trailing 8-hour window to establish the impact bid and ask prices used in the premium index formula.

• Realization period — Katana Perps uses a 24-hour realization period, meaning the full premium between the impact price and the index price is exchanged between long and short positions over a 24-hour cycle. Since funding payments occur every 8 hours, the effective premium index per payment is divided by 3.

Exchange Source Weights

The specific exchanges and their respective weights used in the index price calculation for each market are published in the Katana Perps trading interface and available via the API. Weights are periodically adjusted based on exchange volume, reliability, and data quality.