Bybit uses a unique Dual Price Mechanism to prevent large deviation of the Last Traded Price due to market manipulation or lack of liquidity, which may lead to unnecessary liquidation on high leverage positions. This ensures a fairer trading environment and protects traders from malicious liquidations.
Dual Price Mechanism consists of Mark Price & Last Traded Price.
Mark Price is derived from the global spot price index of major exchanges. Mark Price is used to calculate unrealized profit & loss and to trigger liquidation. When Mark Price hits Liquidation Price, the position will be liquidated.
Last Traded Price is the current market price of perpetual contracts on Bybit's platform.
For more information, please refer to the article 'Dual Price Mechanism'.