RPPI
v1.1.0

Index Methodology

How we calculate the Rocket Payload Price Index — a transparent, rigorous benchmark for orbital freight costs.

Contents

1. Objective

Create a trusted, transparent reference price for “orbital freight” in USD/kg, based on observable market data. The index must be rigorous enough to settle derivatives, enabling hedging for satellite operators, brokers, and investors without physical delivery.

2. Product Definition

Focus on a commoditized “rideshare standard” (RS) service to ensure comparability in a heterogeneous market.

v1.1 Benchmark Unit

  • •Unit: 1 kilogram of payload mass reserved and delivered
  • •Orbit Hub: LEO SSO (500–600 km, 97–98° inclination)
  • •Service Grade: RS = Standard rideshare (no custom adapters, separation, environmental specs)
  • •Payload Mass: 25–500 kg
  • •Lead Time: 6–12 months from booking to separation (anchor bucket)

Flagship Benchmark

RPPI-SSO-RS-6x12

USD/kg to reserve RS mass into SSO, for launches 180–365 days post-booking.

3. Eligible Inputs

Primary inputs ranked by reliability hierarchy:

1

Executed transactions

Contracts/invoices

1.00
2

Firm quotes

Binding with expiry/size

0.70
3

Indicative quotes

RFQ responses

0.30
4

Rate cards

Published pricing (fallback)

0.15
5

Public announcements

Manifests, broker disclosures

0.50
6

Aggregator data

BryceTech, Seradata partnerships

0.50

Normalization Rules

  • • Currency: USD at spot FX
  • • Exclude taxes; include mandatory fees
  • • Bundles: Exclude or unbundle launch component
  • • Reusability: 10–20% discount for proven boosters (e.g., Falcon 9)
  • • Insurance: Subtract/add failure coverage premiums if separable

4. Calculation Methodology

Step 1: Eligible Set

For symbol on day d: Observations in last 7 days, matching lead-time from timestamp.

Step 2: Weighting

w_i = m_i × t_i × r_i
  • • m_i: Mass weight (kg traded)
  • • t_i: Type weight (executed=1.00, firm=0.70, indicative=0.30, rate=0.15)
  • • r_i: Recency = exp(-0.15 × age_days)

Step 3: Outlier Control

  • • Weighted median M, MAD calculation
  • • Drop observations where |p_i - M| > 5 × MAD
  • • Cap single contributor: 35% max weight
  • • Multi-source rule: Require ≥3 contributors for FIRM status

Step 4: Final Print

RPPI(d) = Σ(w_i × p_i) / Σ(w_i)

5. Confidence Scoring

A 0–100 score reflecting data quality:

Components

  • • Diversity (number of contributors)
  • • Mass total traded
  • • Concentration (Herfindahl)
  • • Mix (% executed trades)
  • • Recency of data
  • • Utilization (fill ratio)

Status Thresholds

FIRM≥70
INDICATIVE50–69
STALE<50 or no recent data

6. Publication Cadence

  • •
    Daily Fix: 16:00 UTC
  • •
    Intraday Indicative: If sufficient RFQs
  • •
    Revisions: None except errors; corrections flagged

Version History

1.1.0

Added blended provider index, capacity utilization sub-index, reusability adjustments, multi-source rules

1.0.0

Initial methodology release