# Price Index: NFEXI

The floor price is a widely used metric for valuing NFTs. In simple terms, it represents the lowest ask price for an NFT within a specific collection across various marketplaces. However, the current marketplaces make it easy to manipulate the floor price, which can result in significant differences between the NFT perpetual contract price and the spot price.

At NFEX, we're dedicated to improving liquidity across the entire NFT industry. That's why we've created **NFEXI (NFEX Index)**, a basket of prices from major NFT marketplaces. This is a fair spot price index allowing for real-time tracking of NFT prices, helping with price discovery, and reducing manipulation throughout the NFT market.

The **NFEXI (NFEX Index** ) can be used to hedge against risks, to speculate on future price changes for the underlying NFT, as well as to calculate the [Mark Price](/docs/nfex-perpetual-guide/mark-price-and-last-price.md#mark-price).

## **Index Calculation Methodology**

We obtain price data from 4 major NFT marketplaces which are Blur, Opensea, LooksRare, and X2Y2. And we calculate and update index prices every 3 seconds.

To calculate the NFEX index (NFEXI), we use an average price of the Floor Price and the Top Bid

 from the constituents for  the given NFT collection.  The calculation is as follows:

$$
NFEXI=\frac{Floor Price + Top Bid}{2}
$$

Where:

*The Floor Price is the lowest floor price of the consituent exchanges*

{% hint style="info" %}

## NOTE

Please note that in cases of extreme price volatility or significant deviation from the price index, NFEX will take additional protective measures, including but not limited to changing the constituents and sources of the price index.
{% endhint %}

{% hint style="success" %}

## **Join Our Community**

* **Twitter**: <https://twitter.com/nfex_official>
* **Discord**: <https://discord.gg/nfex>
* **Medium**: [https://medium.com/@nfex.official](https://medium.com/@nfex.official/)
  {% endhint %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://nfex.gitbook.io/docs/nfex-perpetual-guide/price-index-nfexi.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
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.