To reduce the impact of short-term abnormal volatility on market settlement, Gate uses the 60-second TWAP (Time-Weighted Average Price) provided by Chainlink for certain recurring markets as the price display and settlement basis for the underlying asset.
What is TWAP?
TWAP, or time-weighted average price, is not the spot price at a single point in time, but rather the time-weighted average price of an asset over an observation window.
Gate's recurring markets use a 60-second TWAP, meaning each TWAP price reflects the price level over the past 60-second observation window. The longer a price persists, the greater its impact on the average price; short-term fluctuations lasting only a few seconds have a relatively limited impact.
Please note:The 60-second period is the TWAP lookback observation window, not a fixed update interval.
The 60-second observation window is different from the market duration. 5 minutes, 15 minutes, and 4 hours represent the market duration, while the TWAP observation window used by the relevant markets is 60 seconds.
For specific sampling, weighting, and rounding methods, refer to Chainlink's actual data reports.
Why use Chainlink TWAP?
If a single spot price at the settlement moment were used, settlement results would be more susceptible to sharp short-term fluctuations, single abnormal trades, or concentrated trading near settlement.
TWAP aggregates price changes over the observation window, reducing the impact of instantaneous price fluctuations on settlement results, lowering the risk of price manipulation, and providing a more stable price reference for short-duration markets.
Gate uses TWAP data calculated and signed by Chainlink and displays and uses the data for settlement according to Polymarket's market rules. The cryptographic signature is used to verify the source and integrity of the data report. These prices are not calculated or adjusted by Gate based on its internal spot market data.
What price differences may occur?
Due to different calculation methods and data sources, users may observe the following:
TWAP differs from exchange spot prices: The spot price is usually the latest traded price on a particular exchange, while TWAP reflects the average price level over the past 60 seconds.
The difference is more pronounced during rapid fluctuations: When the price rises rapidly, TWAP may be lower than the latest spot price; when the price falls rapidly, TWAP may be higher than the latest spot price.
TWAP trends are relatively smoother: Short-term price spikes are included in the calculation, but they are not reflected to the same extent as they would be in an instantaneous spot price.
Candlestick charts may differ from spot candlestick charts: The candlestick charts for the relevant markets are generated based on TWAP data, so their open, high, low, and close prices may differ from spot exchange candlestick charts.
The settlement price may differ from user screenshots: The spot price on a single exchange at a given moment cannot be directly equated with the 60-second TWAP used for settlement.
The above differences are normal and result from different calculation methods for TWAP and spot prices, and do not indicate data errors or manipulation.
Applicability
The 60-second TWAP currently applies to the following recurring markets:
Market duration: 5 minutes, 15 minutes, and 4 hours
Market types: ETH, BTC, SOL, XRP, DOGE, BNB, and HYPE
For specific prices and settlement methods, refer to the rules described on the corresponding market pages.
References
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.
