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description: PNI is the index of Penals
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# Price Index (PNI)

Penals employs a robust system to closely track the real-time mid-price of NFTs, ensuring transparency and accuracy in the valuation of assets. While the floor price is a commonly used metric, Penals understands the potential for manipulation in the market and aims to provide a more reliable and representative pricing mechanism.

To achieve this, Penals has developed the Penals Index, a comprehensive index that aggregates real-time data from major NFT marketplaces. By leveraging data from reputable platforms, such as Blur, Opensea, LooksRare, and X2Y2, Penals ensures a diverse and reliable data set for price tracking.

The Penals Index is calculated and updated at regular intervals, typically every 3 seconds, to provide traders with the most up-to-date pricing information. The calculation methodology involves deriving an average price from the floor price and the top bid data of the constituent NFT collections. This approach helps mitigate the impact of outliers and provides a more accurate representation of the mid-price.

By utilizing the Penals Index, traders on the platform can make informed decisions based on real-time market data. It enhances price discovery, reduces the risk of manipulation, and facilitates efficient trading of NFT perpetual contracts. Penals is committed to promoting liquidity and integrity in the NFT market, offering traders a reliable platform for their trading needs.



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PNI = (FloorPrice+TopBid)/2
$$



