> 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/3.-can-we-have-some-illustrations-on-the-mark-price-methodology.md).

# 3. Can we have some illustrations on the mark price methodology?

## For illustration purposes, consider the following cases:

#### <mark style="color:blue;">**Case 1:**</mark> volume weighted prices from past transaction since last update is 95.5

Next mark price = <mark style="color:blue;">95.5</mark>

#### <mark style="color:blue;">**Case 2:**</mark> current mark price = 10000, no transactions happened since last update and current order book is as below

<figure><img src="https://2990856053-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FwhvTctDFIxnDaoZ46GEW%2Fuploads%2FH8kK448ThFy3ESTt9fFg%2Fimage.png?alt=media&amp;token=47caa662-fdb8-473e-94a8-f79d475ec7c2" alt=""><figcaption></figcaption></figure>

Next mark price = <mark style="color:blue;">(1 \* 9975 + 5 \* 10025)/ (1 + 5) = 10016.67</mark>

#### <mark style="color:blue;">**Case 3:**</mark> current mark price = 10000, no transactions happened since last update and current order book is one-sided as below

<figure><img src="https://2990856053-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FwhvTctDFIxnDaoZ46GEW%2Fuploads%2Fc9JKsmI2Tjyc7XyUIAOt%2Fimage.png?alt=media&amp;token=db307dd9-8b11-4efc-aaf0-ef95a6f9e276" alt=""><figcaption></figcaption></figure>

Next mark price = <mark style="color:blue;">(1\*7500 + 10 \* 10000)/(1 + 10) \~ 9772.73</mark> (rounded to nearest 2 decimal places)