Why does Mudrex use Mark Price instead of last traded price to calculate liquidation?

Created by Mudrex Support, Modified on Fri, 23 Jan at 5:46 PM by Mudrex Support

Last traded price can move sharply due to short-term volatility or low liquidity. Mark Price reduces the impact of sudden spikes or wicks, helping prevent unfair liquidations. On Mudrex (in line with industry practice), liquidation is triggered using Mark Price, not LTP.

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