> For the complete documentation index, see [llms.txt](https://docs.paragon.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.paragon.trade/markets/crypto-indices/pre-launch-pricing.md). # Pre-Launch Pricing A crypto perpetual may launch with a **Pre-Launch** status when the referenced token is not yet transferable, or no external spot market for it can be observed on a continuous basis. If a qualifying spot market later develops, that same market may transition to standard crypto pricing. A Pre-Launch perpetual is a cash-settled derivative. It does not constitute the referenced token, a claim to receive it, or any right against the issuing protocol. The market's price reflects order flow on Paragon and should not be understood as a fair-value assessment of the referenced token. ## Pricing While Pre-Launch Pre-Launch markets use a methodology inspired by the [hyperp design Hyperliquid introduced](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/hyperps) for pre-launch assets. The formulas that apply on Paragon are set out below. ### Oracle Price The oracle price is an exponentially weighted moving average of the market's own minutely mark prices over the trailing day, with an 8-hour window that may be shortened for an initial period after listing: ``` oracle_price(t) = sum_{i=0}^1439 [(t - i minutes < t_list ? launch_reference_value : mark_price(t - i minutes)) * exp(-i/480)] * (1 - exp(-1/480)) / (1 - exp(-3)) ``` Here `t_list` is the market's listing time, and `a ? b : c` evaluates to `b` if `a` is true and otherwise `c`. The mark price is sampled once a minute. A market that has just listed has no history to fill, so the missing minutes are set to the Launch Reference Value: the oracle starts at that value and moves toward the traded mark as real minutes replace the filler. A minute with no sample carries the previous one forward. The mark price follows the standard [Mark Price](/trading/mark-price.md) construction, with the oracle above serving as its anchor. If external pre-launch perpetual markets for the token exist or become available, their weighted median replaces the raw oracle component (the first component of the mark price) in the mark price median. Despite differing contract specifications across venues, these prices are included to provide greater mark price stability during volatility. ### Price Caps Pre-Launch markets apply three price caps: * The mark price is capped at 3x the 8-hour mark price EMA. * The oracle price is capped at 4x the trailing one-month average mark price, with the Launch Reference Value padding any missing history. * If external pre-launch perpetual markets for the token exist or become available, the mark price is additionally capped at 1.5x their median price. These caps re-anchor continuously out of the market's own history rather than in discrete steps, limiting high-velocity movement while permitting price discovery over time. ### Funding Pre-Launch markets use a reduced funding multiplier, applied to clamped interest-rate and premium formula. The multiplier for each market is set out in the applicable [Contract Specifications](/resources/specifications.md#market-specifications). See [Funding Rates](/trading/fees.md#funding-rates) for how funding works on Paragon markets. Funding is the mechanism that tethers a Pre-Launch market to its oracle average. Under sustained price momentum in one direction, funding increasingly favors positions in the opposite direction over the following eight hours. Understand this dynamic before holding positions through fast markets. ## Launch Reference Values When a Pre-Launch market launches, Paragon selects a discretionary initial reference price. Trading begins from this value, which also seeds the oracle average and the price caps above. The Launch Reference Value is not a forecast, a fair-value assessment, or an estimate of any eventual market price. It may differ materially from private indications or from prices observed once the token becomes transferable. ## Activation of Standard Methodology Once the referenced token is transferable and sufficient external spot market data is available, the market is expected to adopt the standard [External Pricing](/markets/crypto-indices/external-pricing.md) methodology for crypto markets, and the funding multiplier is expected to change to the standard value stated in the applicable [Contract Specifications](/resources/specifications.md#market-specifications). The contract remains continuous across the transition. The change may not produce a smooth economic transition: adjustments to the oracle or funding treatment may cause an immediate movement in the mark price, unrealized profit or loss, margin requirements, or liquidation exposure. --- # Agent Instructions This documentation is published with GitBook. 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