📖BRC-I Index introduction

1. What is BRC-I Composite Index

An index is a way to track and measure the performance of an underlying basket of assets in a standardized manner. The composite market index reflects the composite price of a number of products in the overall market or its representative subset, and the index price is usually calculated as a weighted average of the prices of these market products.

The BRC-I Index is the first BRC 20 token composite index launched by Zeepr. Different indices will be synthesized with different compositions. The BRC-I index contains components such as BTC, ORDI, 1000SATS, RATS. New BRC 20 assets will be added later, and other types of indices will be synthesized.

2.BRC-I Composite index base

The base for BRC-I index is 1000 USD

3. Index components and weights

Asset object	BTC	ORDI	1000SATS	RATS
Weights	25%	25%	25%	25%

4. The calculation

4.1 Index

The index price is calculated using the weighted average of the spot transactions of its components, and the formula is as follows:

This formula guarantees continuous changes in index components/weights and that index prices are only affected by changes in component prices.

4.2 Divisors

The divisor of the base period is:

While at reporting time t:

4.3.Weights

The weight is calculated by the weight factor (which will ensure that the last weight is maintained until it is rebalanced)

The weight can be manually selected or dynamically calculated based on market value, trading volume, etc. Since the BRC-I index includes BTC, and its market value and trading volume are too large compared with other costs, this index uses a fixed weight for calculation.

5. Index adjustment

Once the composite index is launched, Zeepr will not adjust the index components and weights. Once the underlying price is lost due to the corresponding underlying component being removed from the crypto market, Zeepr will make an announcement and maintain the price of the composite index containing the underlying at the moment of the underlying price loss.