Mark price
Mark price is a calculated fair price for a futures contract that the exchange uses for unrealized profit and liquidation. It protects you from being liquidated by a random wick.
How it works
The last traded price on one exchange can spike because of a big order or manipulation. If liquidations used it, positions would be closed by a single wick. So exchanges calculate a mark price based on the index price (an average across several spot venues) plus a smoothed gap between the future and spot.
Each exchange has its own formula, but the idea is the same: mark price moves more smoothly and closer to the broad market than the last trade. Liquidation happens when the mark price reaches your position's liquidation price.
On many exchanges, though, stop orders trigger on the last price by default, not the mark price. Order settings often let you choose which price triggers the stop.
A BTC perp's last price dips to $57,500 for a second because of a large market sell, while the mark price stays near $59,900. Your long's liquidation price is $58,000. You are not liquidated, because liquidation is checked against the mark price, which never reached $58,000.
A common mistake is watching only the last-price chart and being surprised that a position was liquidated earlier or later than expected. Liquidation uses the mark price. Add it to your chart or position panel and track the distance from it to your liquidation price.
Questions and answers
What is mark price in simple terms?
It is a smoothed fair price for the contract that the exchange uses to calculate liquidations and unrealized profit.
What is the difference between mark price and last price?
Last price is the latest trade on that exchange. Mark price is calculated from several sources and reacts less to sudden spikes.
Which price triggers liquidation?
On most crypto exchanges, the mark price. Stop orders usually use the last price by default, but you can often change that.
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Updated: 2026-10-19