Index Rules

Definition ∞ Index Rules are a predefined set of criteria that govern the composition, weighting, and rebalancing of a cryptocurrency index. These rules determine which digital assets are included, their relative proportion, and how often the index is adjusted. They provide transparency and consistency for index-based financial products.
Context ∞ The establishment and adherence to robust index rules are crucial for the credibility of cryptocurrency indices used by institutional investors and retail participants. Debates often involve the methodology for asset selection, liquidity requirements, and the frequency of index adjustments to accurately mirror market segments.