> For the complete documentation index, see [llms.txt](https://docs.lighter.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lighter.xyz/trading/real-world-assets-rwas/rwa-pricing-mechanism.md).
# RWA Pricing Mechanism
RWA pricing is derived from two primary sources: external oracle feeds (e.g., Pyth, Chainlink, RedStone, Stork and Ornn), prices from other trading venues and internal pricing.
The index price is calculated according to the pricing methodology defined below. For [mark price](/trading/fair-price-marking.md), the only change is that the `cexPrices` component is replaced with the pricing methodology defined below.
### **Pricing Transition**
External oracle feeds are the primary price source. When oracle data becomes stale, the pricing mechanism shifts from oracle-based pricing to internal pricing. As soon as an external price is available, the price immediately switches back to the external price.
***
### Internal Pricing
Internal pricing is derived from order book impact prices, smoothed using a time-weighted Exponential Moving Average (EMA).
#### Time-Weighted EMA
$$
EMA\_t = \alpha \cdot P\_t + (1 - \alpha) \cdot EMA\_{t-1}
$$
$$
\alpha = 1 - e^{- \Delta t / \tau}
$$
* **Pₜ** — current impact price
* **τ** — smoothing time constant
* **Δt** — time since last update
***
### Index Price
For index price we set:
* $$\tau = 30 \text{ minutes}$$
The internal index price is capped relative to the last oracle price and the leverage of the market:
* **Indexᵢₙₜₑᵣₙₐₗ ∈ \[ P\_oracle · (1 − 1/L), P\_oracle · (1 + 1/L) ]**
* where **L** is the market's maximum leverage (`1 / IMR`), for both index and mark-price caps.
***
### Mark Price Component
For mark price we set:
* $$\tau = 2 \text{ minutes}$$
The mark price is capped relative to the last oracle price and the leverage of the market:
* **Markᵢₙₜₑᵣₙₐₗ ∈ \[ P\_oracle · (1 − 1/L), P\_oracle · (1 + 1/L) ]**
A simulation:
***
### Price Cap Removal (2026-07-10)
Since July 10, 2026, the following markets have no price caps based on the last oracle price:
SPY, US500, QQQ, US100, XAU, XAG, NVDA, TSLA, AAPL, AMZN, MSFT, GOOGL, META, XCU, SNDK, WTI, XPD, XPT, BRENTOIL, MU, EWY, SPCX, DRAM, SOXL, SKHYNIXUSD, SAMSUNGUSD, INTC, NATGAS, IBM, AMD, MSTR
To prevent manipulation attacks, internal prices will continue to be validated against prices from other trading venues.
---
# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.
## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation by asking a question.
Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters:
```
GET https://docs.lighter.xyz/trading/real-world-assets-rwas/rwa-pricing-mechanism.md?ask=&goal=
```
`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
