The mark price isn’t the latest price—it’s the price used to calculate PnL and liquidation. Frequent liquidators should know this Speaking of the price difference, I checked out the pricing mechanism for US stock perpetuals and found that Binance has a few layers of buffers in addition to the order book handling. During US stock market closures, Binance references the mid-price of the bid-ask spread from the order book, then smooths it out using EWMA to form an index, while also limiting the range of index fluctuations. Simply put, it prevents a single sudden dump from directly dragging down the pricing benchmark. There’s also an extra buffer in the mark price calculation: Price 2 uses a 1-minute moving average of the basis to reduce the impact of short-term order book shocks. The order book handles the trades, and the pricing mechanism buffers the shocks—together, they influence performance during extreme market conditions.