> For the complete documentation index, see [llms.txt](https://docs.cvi.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.cvi.finance/cvi-index/cvi-index.md).

# CVI Index

The Crypto Volatility Index (CVI) stands as a pioneering benchmark in the cryptocurrency market, offering a decentralized, stable, and transparent measure of market volatility. Developed in collaboration with Prof. Dan Galai, co-creator of the original CBOE volatility index, CVI serves as a "market fear index" specifically tailored for the dynamic world of cryptocurrencies.

**Functionality and Mechanics**

At its core, CVI tracks the 30-day implied volatility of major cryptocurrencies, namely Bitcoin and Ethereum. The base CVI index operates on a scale from 0 to 200, reflecting varying levels of market volatility. Its calculation is rooted in the Black-Scholes option pricing model, which integrates the implied volatility derived from cryptocurrency option prices and incorporates the market's projections of future volatility.

<figure><img src="/files/EoQWGowlt3GWuFS0NSej" alt=""><figcaption></figcaption></figure>

**Trading and Strategic Application**

Trading based on the CVI provides a unique strategic advantage. It allows traders to capitalize on market volatility without the need to predict specific price directions. Traders make a profit on volatile markets, whether the prices are going up or down.

**Tradingview Integration**

TradingView is a widely recognized and highly regarded platform among traders and investors, with a vast user base spanning the globe. It offers state-of-the-art charting tools that allow market enthusiasts to engage, analyze data, and prepare for [EURUSD](https://www.tradingview.com/symbols/EURUSD/), [BTCUSDT](https://www.tradingview.com/symbols/BTCUSD/) trading and various other assets.