LBank Futures Will Launch BRC20 USDT-Margined Perpetual Contract

1. Index Information

A cryptocurrency index reflecting the price trends of BRC-20 sector tokens.

2. Index Details

The initial date is the base date, and the base level of the index is 100.

4. Token Index Composition

The components of this sector index are the top 5 market capitalization tokens listed on https://www.brc-20.io/ (the number of tokens will increase to 10 with the popularity of the BRC20 token sector). For specific components, please refer to the URL.

5. Index Calculation

5.1 Index

The BRC-20 sector index price is calculated based on the weighted average price of the tokens that make up the index, such as ORDI/USDT, STAS/USDT, etc.

Where:

n: number of constituent tokens;
p: latest price of each component token, priced in USDT;
w: weight of each component token;
divisor: divisor of the latest stable index.

This formula ensures continuous changes in index components/weights and that the index price is only affected by changes in the underlying component prices.

5.2 Divisor

Index divisor on the base date:

Index divisor during each rebalancing:

5.3 Weights

The weight of each component in the index is calculated through a weighting factor (weights remain unchanged between index rebalances).

The BRC-20 sector index uses market capitalization weighting. The weighting factor is calculated as follows:

Here, the market cap is the current market value of the corresponding token at the time of rebalancing. All indicators are priced in USDT.

5.4 30% Token Weight

The maximum weight limit for each token is 30%:

For tokens with a weight less than 30%:

Where:

count_capped: number of component tokens with a weight cap of 30%;
sum_non_capped: total market value of all tokens with a weight less than 30%.

5.5 Sample

The following table is an example of the composition of the BRC-20 sector index (all data are examples, specific parameters are subject to actual conditions):

6. Rebalancing

6.1 Regular Rebalancing

Rebalancing takes place every Tuesday at 4 pm(UTC+8).

6.2 Temporary Rebalancing

Special adjustments are made when necessary due to drastic changes in one or more tokens (delisting or other external reasons).