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What are Relative Indices?

In addition to individual assets, the Relative platform has created various cryptocurrency indices consisting of the top projects in each category / sector.
Users can wager on the relative strength of each index against each other or against individual assets too, greatly expanding the asset pairs available for speculation.
All Indices created by Relative are weighted by free-float market cap, with both index price and market cap weightage being updated every 30 minutes. Index price has been standardised to 1000 points on inception for ease of reference and calculation. All Relative Indices will be reviewed and updated on a monthly basis, with underlying assets either being removed or added based on their performance.
Note: Relative Indices simply allow speculators to track and measure the aggregate performance of a basket of assets in a standardized manner. Wagering on a Relative Index does not result in the creation, purchase, or sale of underlying assets.
Methodology
The formula for index weight of one asset:
Total market cap of asset A _____________________________________________ Sum (Total market cap of each asset)*100
*Total market cap = price * circulating supply
The formula for index price:
Sum (price change for each asset * previous weight for each asset)
Example Scenario:
Hour 0 (token: price * supply)
Token A - $10 * 100 tokens
Token B - $5 * 100 tokens
Token C - $20 * 100 tokens
Token D - $10 * 100 tokens
Token E - $5 * 100 tokens
Token Weights:
A - (10*100/5000)*100 = 20%;
B - (5*100/5000)*100 = 10%;
C - (20*100/5000)*100 = 40%;
D - (10*100/5000)*100 = 20%;
E - (5*100/5000)*100 = 10%
Total = 100%
Index Price on Hour 0 = 1000.
Hour 1 (token: price *supply (% change))
Token A - $15 * 100 tokens (+50%)
Token B - $7 * 100 tokens (+40%)
Token C - $15 * 100 tokens (-25%)
Token D - $10 * 100 tokens (0%)
Token E - $10 * 100 tokens (+100%)
New token weights:
A - (15*100/5700)*100 = 26.32%;
B - (7*100/5700)*100 = 12.28%
C - (15*100/5700)*100 = 26.32%;
D - (10*100/5700)*100 = 17.54%
E - (10*100/5700)*100 = 17.54%
New Index Price at Hour 1:
A - (50%*20%) + B - (40%*10%) + C - (-25%*40%) + D (0%*20%) + E - (100%*10%) = 10% + 4% + (-10%) + 0% + 10% = +14%
Therefore, new index price on Hour 1 = 1140.