Index Formula

Our sats/vb price index is the source for what value your trade will be settled at. You can view our index here: [link coming soon]

$$\text{Index Value} = \frac{\sum_{i=1}^{n} (w_i \times \text{Fee}_i)}{\sum_{i=1}^{n} w_i}$$

Index Value:

The Index Value represents the weighted average of the median Bitcoin transaction fees. Index value only changes once a new block is confirmed.

The number of blocks considered in the calculation. Fixed to the last 144 blocks.

$w_i = e^{-\lambda \times t_i}$

Weight assigned to the median fee of the 𝑖-th block.

• λ (Lambda): This is the decay rate or the rate at which the importance (weight) of older data decreases. A higher lambda value increases the rate at which the relevance of older blocks declines.

• $t_i$: This represents the number of blocks since the 𝑖-th block was mined, relative to the current block.

$Fee_i$:

The median transaction fee of the 𝑖-th block.