Index Methodology

The Cloud Wine Index is a weighted index system tracking secondary-market price movements for fine wines globally. It comprises an overall index and multiple regional sub-indices, providing an objective, trackable benchmark for collectors, investors, and industry professionals.

Component wines must satisfy: (1) active secondary-market trading records; (2) minimum transaction volume on major auction/trading platforms in the past 12 months; (3) critic scores ≥90/100 from globally recognised critics; (4) producer reputation grade of "Iconic" or above. Components are reviewed quarterly.

Components are volume-weighted with a Scarcity Factor and Liquidity Discount applied. Formula:

Weight = (Volume Score × 0.6) + (Scarcity Score × 0.3) + (Rating Score × 0.1)

Single-component cap is 15% to prevent over-concentration.

A new index snapshot is automatically calculated whenever an approved price record is recorded. Process: (1) fetch each component's latest approved transaction price; (2) convert to the base currency (TWD) using current exchange rates; (3) compute the current weighted average price; (4) divide by the index divisor to obtain the index level; (5) compute 1W / 1M / 3M / YTD / 1Y / 3Y changes against historical snapshots.

The index employs the industry-standard divisor method to maintain continuity: index_value = weighted_price / divisor. The divisor is established once at index launch based on the base value (2020-01-01 = 1000 pts) and remains constant during daily recalculations — all index movements originate purely from component price changes. When the research team adjusts components or weights, the system automatically recomputes the divisor against the prior day's closing level to preserve curve continuity, preventing artificial jumps caused by structural changes.

Divisor values are fully determined by formula with no room for discretionary adjustment; all component/weight changes and corresponding divisor revisions are auditable.

Component review and weight rebalancing occurs quarterly (January, April, July, October). Major market events may trigger ad-hoc reviews. All component changes are announced 10 business days in advance to ensure market transparency.

Price data sourced from: Liv-ex, Sotheby's, Christie's, Hart Davis Hart, Acker Merrall & Condit, and other major auction houses. All data is manually verified before ingestion. Due to data licensing, displayed prices are delayed approximately 15–30 days and do not represent real-time market quotes.

Index snapshots are automatically updated at the end of each trading day, typically published before 8:00 AM Taipei time the following day. Updates may be delayed due to data source delays or system maintenance, with announcements posted on the homepage.

Historical data undergoes a completeness check at the beginning of each month to ensure accuracy of back-filled data. During quarterly rebalancing periods (first trading day of each quarter), the index may exhibit non-market-driven jumps, which will be marked as "Rebalancing Adjustment" for reference.

To ensure index stability and representativeness, the system detects and handles anomalous transaction prices. Specific rules:

(1) A single transaction price deviating more than ±40% from the wine's 30-day moving average is automatically flagged for manual review; (2) When multiple transactions for the same wine on the same day differ by more than 20%, the median is used as the representative price; (3) Extreme prices confirmed as genuine market activity (e.g., record-breaking auction for a rare vintage) are still included in calculations but annotated accordingly.

Please note the following limitations and disclaimers when using Cloud Wine Index data:

(1) This index is for informational purposes only and does not constitute investment advice or a basis for trading decisions. Users should not rely solely on this index for buy/sell decisions and should assess risks independently and consult professional advisors.

(2) Reproduction, citation, or commercial use of index data requires prior written authorization from Ben's Digital Great Wine Index Technology Co., Ltd. Academic citations should credit "Data source: Cloud Wine Index."

(3) Due to data delays (15–30 days) and liquidity differences among component wines, index levels do not represent real-time executable prices for any wine.

(4) Historical index data may differ slightly from previously published values due to back-corrections (e.g., data source corrections, component adjustments).

(5) Ben's Digital Great Wine Index Technology Co., Ltd. assumes no liability for any direct or indirect losses arising from the use of index data.