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# Index Calculation

The index value is the spot value of the PONY Index and is calculated with the Laspeyres formula which measures price changes against a fixed quantity weight, the weightfactor.

$Indexvalue_{t} = {\sum_{i\ in\ Tokens} {wf_{i,t} \cdot p_{i,t}} \over Divisor_{t}}$

• Weightfactor (wf): fixed quantity of tokens determined at the most recent Determination Phase from prices and target weights that.
• Price (p): value of the vault in USD.

Divisor: a constant that is adjusted on each Reconstitution Date to maintain the continuity of the index value.