# Oracle and Index Price

Bluefin utilizes two types of price feeds to retrieve the USD value of perpetual contracts in various functions within its platform: Oracle Price and Index Price. These price feeds play a crucial role in the proper functioning of the platform, ensuring accurate calculations and triggering specific actions.

The Index Price is a volume-weighted average of spot prices from leading exchanges, aggregated and updated every few seconds. It is used for unrealized PnL calculations, triggering stop orders, and funding rate calculations.

The Oracle Price triggers liquidations, calculates funding payments between, and protects traders from taking orders at prices far from the market.

By leveraging these two types of prices, Bluefin can offer its users a secure, robust, and efficient trading experience, ensuring that they can trade digital assets with confidence and ease.

### Oracle Price

The Oracle Price on Bluefin is used for liquidations, funding payments, and market take protection. Given the sensitive nature of Oracle prices, Bluefin uses decentralized sources to obtain these values to maximize security.  Bluefin v2, deployed on the Sui network, uses Oracle price feeds powered by the [Pyth network](https://pyth.network).

Using decentralized price feeds, Bluefin can achieve robust, low-cost, and high-performance price referencing and correlated on-chain calculations, minimizing pricing vulnerabilities and ensuring a seamless user trading experience.

The parameters of the oracle prices obtained from the two sources can be found here:

Pyth Network: <https://pyth.network/price-feeds>

### Index Price

The Index Price is used for unrealized PnL calculations, triggering stop orders, and funding rate calculations.&#x20;

Bluefin's Oracle and Index Prices are vital to the platform's functionality, ensuring accurate calculations and triggering specific actions. The Index Price is used for unrealized P\&L calculations, triggering stop orders, and funding rate calculations, while the Oracle Price is used for liquidations, funding payments, and market take bound.

On Bluefin v2, Index Prices are received via the Pyth network.

**By utilizing reliable and secure price feeds, Bluefin ensures its users can trade digital assets with confidence and ease.**


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