# Floor Price

Calculating the price of an NFT is quite problematic due to the nature of NFTs. One NFT is not equal to another NFT from the same collection, unlike tokens where each token can have the same price. NFTs in collections may have different perks and attributes, meaning that the price of each NFT can vary.

There are several mechanisms to calculate the price of an NFT. One way is to calculate the price of each NFT separately. However, this mechanism doesn't help in our case, where we need to calculate the price of the whole collection.&#x20;

This is where the Floor Price comes in. It is already used in ChainLink oracles and other protocols and has become a standard way of valuating NFT projects. **The Floor Price is simply the lowest seller asking price for a given collection across all available marketplaces.**

Although the Floor Price is a standard way of calculating the price of an NFT collection in the crypto industry, it may create problems when used in a project like Ariable, where we use Perpetuals Trading with Leverage.

The Floor Price that is being calculated from the minimum asking price represents only the sell side, rather than the fair price for the collection. With small liquidity on the NFT market, it could lead to price manipulation and the creation of bad debt in the protocol.

### Temper-proof Floor Price

In Ariable, we will be using a robust version of the Floor Price Oracle that will remove the risks of price manipulation. To do this, our algorithm will consist of several key features:

* Filtering out extreme values using mathematical methodologies
* Taking input data from all marketplace and in addition from on-chain events
* Using Time Weighted Average Price (TWAP)
* Focusing only on the biggest NFT collection, where it is harder to manipulate the floor price

This change in the Floor Price calculation logic will make Ariable safe and proof against price manipulation.
