Index Price Protection Mechanism

The GHF Coin Index Price Protection Mechanism is designed to ensure the accuracy and stability of index prices. The details of the mechanism are as follows:

1. Connection Timeliness:

   • If the price of a constituent exchange does not update within 10 seconds, the weight of that exchange will be reduced to zero in the index price calculation.
   • If the constituent exchange updates within 10 seconds, its weight will be restored.

2. Handling of Constituent Exchange Prices:

   a. For ≥2 Constituent Exchanges: i. If the price of a constituent exchange deviates from the median price of constituent exchanges by more than 10%, it will be removed from the index calculation. ii. If the cryptocurrency price of a constituent exchange deviates from the median price by more than 5%, the price will be adjusted within a 5% range. Once the price is within 5% of the median, the index will be updated.

   b. For =1 Constituent Exchange: i. If the cryptocurrency price of the constituent exchange deviates from the platform’s cryptocurrency price by more than 10%, the price of that constituent exchange will be excluded. ii. The final calculated index price will then follow the platform’s cryptocurrency price.

3. Recall and Non-Follow of Constituent Exchange Prices:

   • If any of the following conditions are met within 5 consecutive minutes, excluded constituent exchanges will be reintroduced into the index calculation:
     • For indexes with 2 or more remaining active constituent exchanges, the excluded exchange’s price must be within 3% of the median price of the remaining active constituent exchanges.
     • For indexes with only 1 remaining active constituent exchange, excluded exchanges will not be recalled.

Through this mechanism, the GHF Coin Index Price Protection Mechanism aims to ensure the accuracy of index prices and adjust the weight and price of constituent exchanges based on specific conditions, providing stable and reliable index data.