How is the v3 close price formula derived?

Other
1

https://dydxprotocol.github.io/v3-teacher/#liquidations

image
image1522Ɨ674 83.3 KB

1 Like
2

Anyone has an idea on why it looks like this? How to understand this formula?

Iā€™m able to understand this example but not the formula itself

2 Likes
3

Feel it should be:

Close Price (Short) = P Ɨ (1 + (M Ɨ V * (1 - M) / W))
Close Price (Long) = P Ɨ (1 āˆ’ (M Ɨ V * (1 - M) / W))

instead, anyone has an idea?

1 Like