# Latest Price vs. Mark Price

### Definitions and Key Differences

#### Latest Price

The **Latest Price** refers to the most recent transaction price of the contract — the price at which the last trade was executed.

* In YUBIT perpetual contracts, the latest price is influenced by the underlying asset.
* Due to continuous buying and selling activity, the latest price may deviate from the spot market price.
* This price often reflects short-term supply and demand dynamics within the contract market.

#### Mark Price

The **Mark Price** represents the estimated fair value of the contract. It is primarily used to manage risk and prevent unnecessary liquidations during volatile market conditions.

* YUBIT calculates the mark price based on a weighted average of prices from multiple sources.
* This creates a more stable and reliable reference, reducing the risk of price manipulation or abnormal spikes.

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### Accessing Mark Price History

You can review the historical mark price data directly on the YUBIT platform:

* **Web:** Navigate to “Contract Data” and select the Mark Price section.
* **App:** On the contract trading page, tap the three dots in the top right corner, then select **“Mark Price History.”**

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### Impact on Liquidation and PnL

#### Liquidation

Liquidations on YUBIT are triggered by the **Mark Price**, not the latest price.

* If the mark price reaches the liquidation threshold, a forced liquidation may occur.
* This ensures that short-term volatility in the latest price does not unfairly trigger liquidations.

#### Stop-Loss Considerations

Some traders wonder why a stop-loss order is placed but their position still gets liquidated.

* This usually happens when the stop-loss is set too close to the liquidation price.
* If the stop-loss is based on the latest price instead of the mark price, the mark price may reach the liquidation threshold faster.
* **Tip:** When setting a stop-loss near the liquidation price, always select **Mark Price** as the trigger condition.

#### Unrealized PnL

Unrealized profit and loss (PnL) is calculated using the **Mark Price**, ensuring that PnL reflects a fair and stable reference value before the position is closed.

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### Summary

* **Latest Price:** The actual last traded price in the market.
* **Mark Price:** A fair-value reference price, adjusted to prevent unnecessary liquidations.
* Mark Price is always used for liquidation calculations and unrealized PnL.
* While Mark Price is not a real transaction price, it serves as a **risk management tool**, protecting traders against extreme volatility.