Gate Event Contracts offer two types of price benchmark markets: Contract Index (INDEX) and Time-Weighted Average Price (TWAP). Different price benchmarks determine how the underlying price is displayed and the basis for settlement. Before trading, please confirm the market you select and its applicable rules.
1: What is the difference between INDEX and TWAP?
The main differences between these two market types are the source of the underlying price and how it is calculated:
| Comparison Item | Contract Index (INDEX) | Time-Weighted Average Price (TWAP) |
|---|---|---|
| Price Source | Gate Contract Index Price | Time-weighted average price provided by Chainlink |
| What the Price Represents | Reflects the market price level calculated from multiple price sources | Reflects the average price level over the specified observation window |
Even for the same asset and event period, the target price, current reference price, and final settlement price may differ between the two market types.
2: What is the Contract Index (INDEX) price?
INDEX markets use the Gate Contract Index Price as the basis for displaying and settling the underlying price.
The Gate Contract Index Price is calculated as a weighted average based on selected price sources, such as exchanges, and is designed to reflect the composite market price of the underlying asset. For details on index components and weights, see Gate Index Price Guide .
When checking market data for an INDEX market, please refer to the Contract Index Price for the relevant asset. The latest contract price, mark price, and latest spot price use different pricing methodologies and may differ from the index price.
3: What is the Time-Weighted Average Price (TWAP), and where does the data come from?
TWAP (Time-Weighted Average Price) is calculated by weighting prices based on how long they persist during an observation window. This can reduce the impact of short-term price fluctuations on the average price.
Gate's TWAP markets use time-weighted prices calculated and provided by Chainlink as the basis for displaying and settling the underlying asset price. These prices are not independently calculated by Gate based on spot trade prices or Event Contract order book quotes on the platform.
All current TWAP-related markets use a 60-second observation window. Each TWAP value reflects the price level during the preceding 60-second window. For example, if the settlement time is 12:00:00, the displayed settlement price is the weighted average of all prices from 11:59:00 to 12:00:00.
4: Does switching between INDEX and TWAP only change the chart?
Switching the price benchmark takes you to a different, independent market.
The two market types have their own order books, bid and ask quotes, orders, positions, and settlement results. Therefore, even for the same asset and period, the prices of Up or Down contracts may differ between the two markets.
Switching markets does not change the market associated with existing orders or positions, nor does it change their settlement basis. When viewing or managing existing orders, please confirm the applicable price benchmark.
5: Why can the two markets produce different results for the same asset and period?
Because their price sources and calculation methods differ, the final values used to determine whether the price moves up or down may also differ, potentially resulting in different outcomes.
For example, assume that the target price for two BTC markets is 70,000:
| Market | Final Settlement Price | Result |
|---|---|---|
| INDEX | 70,010 | Up |
| TWAP | 69,995 | Down |
The above is for illustrative purposes only. In actual trading, the target prices of the two market types may also differ, and each market settles independently according to its own rules.
6: Which markets currently support both price benchmarks, and how do I choose?
Currently, 5-minute and 15-minute BTC and ETH Event Contracts offer both INDEX and TWAP markets. The tradable range displayed on the page shall prevail.
You can go to Gate App / Website → Contracts → Event Contracts to select the relevant asset, period, and price benchmark, then review the trading rules on the market page.
Before placing an order, confirm whether the market title or price benchmark label shows INDEX / Contract Index or TWAP / Time-Weighted Average Price, and select the market based on the pricing methodology you are familiar with.
Disclaimer
The content provided herein is for reference and educational purposes only and does not constitute any financial, investment, trading, or legal advice, nor does it constitute an offer or solicitation to buy or sell any digital assets. Gate makes no express or implied representations or warranties regarding the accuracy, completeness, or timeliness of the information contained herein. Product features, interfaces, rules, and fee structures may be updated or adjusted at any time. Please refer to the latest announcements and the actual information displayed on the Gate platform for the most accurate details.
Digital asset investments involve significant risk, and prices may fluctuate substantially. You may lose the entire amount of your investment. Please make decisions cautiously based on your own financial situation and risk tolerance after fully understanding the associated risks. If necessary, you are advised to consult an independent professional financial or legal advisor.
For more information about potential risks, please refer to Gate's Risk Disclosure and User Agreement.
