> For the complete documentation index, see [llms.txt](https://docs2.dboe.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs2.dboe.exchange/dboe/on-chain-clob-faqs/2.-what-is-the-methodology-to-calculate-the-mark-prices.md).

# 2. What is the methodology to calculate the mark prices?

## The next mark price will be determined using the below steps:

1. If there have been transactions since the last recalculation, the new mark price will be the volume-weighted last prices.
2. If there are ***both Bid and Offer prices available***, the new mark price will be determined by the <mark style="color:blue;">**volume-weighted order price**</mark> for the best Bid and Offer.
3. If the order book has ***one-sided activity*** (either Bid or Offer), the new mark price will be set as the price of <mark style="color:blue;">**the best Bid or Offer**</mark>.

## To prevent price manipulation, the mark price will be updated based on the the following triggers, whichever occurs first:

1. **Timer**: the mark price will be recalculated every <mark style="color:blue;">**2 minutes**</mark>;
2. **Randomness:** the submission of LMT order could randomly trigger mark price recalculation if mark price is <mark style="color:blue;">**older than 1 minute**</mark>.


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