EasyCoins CBI Index is a cryptocurrency price index launched in November 2022 that tracks the performance of mainstream crypto coins. CBI Index launched 3 indices, including CIC50 (Crypto market Index, selecting 50 mainstream tokens), DEFI10 and MVI5 (Industry Indices that can better reflect the overall development of the industry).The Index is calculated using a formula that incorporates the weighted averages of the constituent tokens’ real-time** Capped ****Market Capitalization and ****Equal Weighted Indices** on the EasyCoins Spot market, denominated in USDT.

**EasyCoins CBI Index Details**

**Index Location**

You can view the EasyCoins CBI Index chart and live data on the EasyCoins Futures pages.

**Index Specifications**

**Base Index**

The base level of the Index is 100 as of the Index Base Date.

**Constituents**

**4.1 CBICIC50USDT**

The CBI Crypto Industry Combination 50 index (**CBICIC50USDT**) is as capped market capitalisation index with 50 constituents grouped into groups with a maximum weight of 40% for each group. Each group contains one of more constituents. The index, **C****BICIC50USDT, **includes 50 mainstream coins. These coins has been classified into four clusters, which are financials, Culture, Blockchain, and Commercial & Technical Sevives. Please click **CBICIC50USDT**** to see more.**

**4.2 MVI5 and DFI10 **

The Meatverse Index 5 (MVI5) index is an equal-weighted index with 5 constituents selected from the Metaverse Industry in CICS. And the DeFi index 10 (DFI10) index is an equal-weighted index with 10 constituents selected from the Decentalised Finance Industry Group in CICS.

For information on the latest constituents of the EasyCoins CBI Index, go to the INDEX page, then on the right side of the page you will find information about Component.

**Index Calculation***

At a broad level, indices are defined into two categories: **Capped Market Capitalization Weighted Index** and **Equal Weighted Indices** Indices.

**5.1 Index: ****CBICIC50USDT **

A capped market capitalization weighted index is one where single index constituents or defined groups of index constituents are confined to a maximum weight and the excess weight is distributed proportionately among the remaining index constituents. Sometimes, it is also called a capped market cap index, capped index or capped weighted index. As constituent prices change the weights will shift and the modified weights will change. Therefore, a capped market cap weighted index must be rebalanced from time to time to re-establish the proper weighting.

The calculation for capped indices is identical to market capitalization weighted indices except that the indices use an additional weight factor to adjust the market capitalization to a value such that the index weight constraints are satisfied. For capped indices, no change is made on the additional weight factor due to project or corporate actions between rebalancing calculations. Therefore, the weights of constituents in the index will change due to market capitalization changes.

**The index level is calculated by:**

Where the numerator on the right-hand side is the market value of an index with all constituents' circulating market capitalizations. This is summed across all the constituents in the index. The denominator is the divisor.

**The ***index value*** is calculated by:**

Where *Pi* is the price of each constituent in the index, *Qi* is the quantity of each constituent's circulating supply, and *i* denotes a constituent.

However, to calculate a capped index, the market capitalization for each constituent in the index is redefined so that it has the appropriate weight in the index at the initial calculation date and also each rebalancing date. The new adjustment factor used to establish the appropriate weighting is called Capped Market Capitalization Adjustment Factor (CMCAF).

**Therefore, the constituent market value is calculated by:**

Where *CVi* is the market value of constituent *i*, *Pi* is the price of constituent *i*, *Qi* is the quantity of the circulating supply of constituent *i,* and *CMCAFi* is the adjustment factor of constituent *i*.

**Therefore, the index level is calculated by:**

**And, the CMCAF for each index constituent ***i*** on rebalancing date ***t*** is calculated by:**

Where *CWi,t* is the capped weight of constituent *i* on rebalancing date *t* as determined by the capping rule of the index in question, and *Wi,t* is the uncapped weight of constituent *i* on rebalancing date *t* based on the circulating-adjusted market capitalization of all index constituents.

The index divisor is defined based on the index level and market value. The index level stays unchanged at the rebalancing. But the divisor will change at the rebalancing since prices and circulating supplies will have changed since the last rebalancing.

**Therefore, the divisor is calculated by:**

**Where:**

**An example**

Let's assume we are constructing a capped market capitalization weighted index named XYZ, which is composed of three constituents X, Y, and Z. The cap for index XYZ is set to 50%. Price and quantity of circulating supply for each constituent are shown in table:

The uncapped weight of each constituent before adjustment is shown below:

The uncapped weight of constituent Z does not satisfy the cap of the index. Hence, the weights of constituents are adjusted accordingly:

We set the divisor to 36,000,000 USD, therefore the index level of XYZ is:

**5.2 Index: DEFI10 and MVI5**

DEFI10 and MVI5 are both counted by equal weighted index. An equal weighted index is one where the index constituents have the same weight. As the constituents' price change, their weights will shift and break the exact equality. Therefore, an equal weighted index must be rebalanced from time to time to reestablish the equal weighting.

The overall approach to calculating equal weighted indices is the same as the capitalization weighted indices. However, the constituents' market value are set to a value to achieve a specific weight at each rebalancing that is different from a purely circulating-adjusted market capitalization weighting.

**The index level of an equal weighted index is calculated by:**

**The IndexValue is calculated by:**

Where the IndexValue is the market value of an index with all constituents' circulating market capitalization; Pi is the price of each constituent in the index, Qi is the quantity of each constituent's circulating supply, and i denotes a constituent.

However, to calculate an equal weighted index, the market value for each constituent in the index is redefined so that it has the same weight in the index at the initial calculation date and also at each rebalancing date. The new adjustment factor used to establish the appropriate weighting is called Equal Weighted Adjustment Factor (EWAF).

**Therefore, the constituent market value is calculated by:**

Where CVi is the market value of constituent i, Pi is the price of constituent i, Qi is the quantity of the circulating supply of constituent i, and EWAFi is the adjustment factor of constituent i.

**Therefore, the index level is calculated by:**

**And, the ***EW AFi,t*** for each index constituent ***i*** on rebalancing date ***t*** is calculated by: **

Where **N** is the total amount of the constituents, and **W****i, t** is the original weight of constituent i on rebalancing date t based on the circulating-adjusted market capitalization.

The index divisor is defined based on the index level and market value. The index level stays unchanged at the rebalancing. But the divisor will change at the rebalancing, since prices and circulating supplies will have changed since the last rebalancing.

**Therefore, the divisor is calculated by:**

**An example**

Let's assume we are constructing an equal weighted index named XYZ, composed of three constituents X, Y, and Z. The price and quantity of circulating supply for each constituent are shown in the table:

The original weight of each constituent before adjustment is shown below:

The original weight of each constituent before adjustment is shown below:

The adjusted weights are:

**We set the divisor to 36,000,000 USD. Therefore, the index level of XYZ is:**

6. **Rebalances**

The launch date of EasyCoins BLUEBIRD Index is 2022-11-16 14:00 (UTC+ 5.5), the first rebalance is scheduled for 2022-12-16. 14:00 (UTC+ 5.5).

**6.1 Regular Rebalances**

The Index constituents and their weights will be automatically rebalanced every 15th at 14:00 (UTC+ 5.5) to adapt to changes in the market and to reflect the respective fluctuations of each constituent’s market capitalization. For more details about weight rebalancing, please refer to link in section 4.1 and 4.2 above.

**6.2 Special Adjustments**

Special adjustments are deemed necessary when one or several constituents face drastic changes (e.g., delisting or lack of organic volume). EasyCoins will keep users informed of future Index adjustments.

**Two kinds of special adjustments can occur:**

- Exclusion of an existing constituent and recalculation of the weights (and Divisorst) for the remaining constituents; or
- Exclusion of an existing constituent and replacement with a different Bluebird listed on EasyCoins Spot market, where recalculation would also be needed, causing the index to be rebalanced as well.