# Glossary ## General | Term | Definition | | -------------- | ------------------------------------------------------------------------------- | | **Market** | A trading environment for a specific asset, event, or instrument | | **Order Book** | List of active buy (bids) and sell (ask) orders in a market | | **Liquidity** | The availability of buyers and sellers in a market | | **Maker** | A trader who places an order that adds liquidity to the order book | | **Taker** | A trader who matches an existing order and removes liquidity from the orderbook | | **Spread** | The difference between the highest bid and the lowest ask in an orderbook | | **Slippage** | The difference between the expected and the actual execution price | ## Trading | Term | Definition | | -------------------- | --------------------------------------------------------------------- | | **Buy Order** | An instruction to purchase an asset or outcome | | **Sell Order** | An instruction to sell an asset or outcome | | **Market Order** | An instruction to buy or sell immediately at the best available price | | **Limit Order** | An instruction to buy or sell only at a specified price | | **Position** | An active holding in a market | | **Position History** | A record of past trades and closed positions | ## Prediction Markets and Yield Farm | Term | Definition | | ----------------------- | --------------------------------------------------------------------------------------------------- | | **Outcome** | A possible result of an event, for example YES or NO | | **Outcome Token** | A token representing a position in a specific outcome. Settles to $1 if correct and $0 if incorrect | | **Settlement** | The final resolution of a market based on the real world result | | **Payout** | The amount received after settlement | | **Implied Probability** | The market price interpreted as a probability. A price of $0.25 implies roughly a 25% chance | | **Yield (Yield Farm)** | The spread between the entry price and $1, representing the return if the leg resolves correctly | ## Pre TGE and Pre IPO Markets | Term | Definition | | -------- | ----------------------------------------------------------------------------------------- | | **TGE** | Token Generation Event. The official launch of a token | | **IPO** | Initial Public Offering. The official listing of a private company's shares | | **FDV** | Fully Diluted Valuation. Total value of a project assuming all tokens are in circulation | | **Band** | A valuation range used as a tradable outcome in pre TGE and pre IPO markets | | **Bull** | A directional position betting the valuation will land within or above the selected range | | **Bear** | A directional position betting the valuation will land within or below the selected range | ## Options Markets | Term | Definition | | -------------------------- | ---------------------------------------------------------------------------------------------------------------- | | **Option** | A conditional payout instrument tied to whether an underlying asset lands within a defined price range at expiry | | **PRM Token** | The write position token received when minting an options position. Represents the collateral claim | | **oPRM Token** | The outcome token received when minting an options position. Tradable on the orderbook | | **Minting** | The process of depositing USDM as collateral to receive PRM and oPRM tokens | | **Unwind** | Returning equal amounts of PRM and oPRM tokens before expiry to recover full collateral | | **Writer** | A user who mints a position by depositing collateral and receives both PRM and oPRM tokens | | **Expiry** | The time at which an options market resolves and positions are settled | | **ITM (In the Money)** | When the underlying asset settles within the option's strike range at expiry | | **OTM (Out of the Money)** | When the underlying asset settles outside the option's strike range at expiry | ## RWA Markets | Term | Definition | | ------------- | ----------------------------------------------------------------------------- | | **RWA** | Real World Asset. A tokenised representation of a physical or off chain asset | | **Perpetual** | A market with no expiry. Positions remain open until sold | ## Wallet and Settlement | Term | Definition | | ---------------------- | --------------------------------------------------------------------------------------------------------------------------- | | **USDM** | The stablecoin used for trading and settlement on MegaETH markets | | **USDC** | The stablecoin used for trading and settlement on Solana markets (Prediction Markets, Yield Farm) | | **Smart Account** | A delegated trading wallet that batches transactions and abstracts gas | | **Subkey** | A delegated key that operates the smart account. Managed by the system | | **Onchain Settlement** | Final execution of a trade or settlement recorded on the blockchain | | **DFlow** | The liquidity partner for Prediction Markets and Yield Farm on Solana. 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