Glossary

Short definitions of the terms the app and the docs use.

Updated Nov 9, 2026

Market and reserves

Term	Meaning
Market	One token pair with its own reserves, debt, tranche backing and parameters. Also called a pool in older material.
Base, quote	The two assets of a market, in the order the creator chose. Prices are quote per base.
Live reserve	The stored reserve on one side: cash plus cash-backed debt plus the hLP live component.
Cash reserve	The part of the live reserve that is physically in the vault and can leave in a swap or withdrawal.
Cash-backed debt	Public lending debt and isolated leverage debt: cash that was lent out and is owed back with interest.
Executable reserve	The live reserve minus unpaid interest; the coordinate the curve is built on.
Ordinary tranche	The executable reserves with hLP ownership removed; what a swap actually trades against. Separate from the senior and junior tranches, which split ownership of the reserve, not its trading coordinate.
Reduce-only	A mode, per market or protocol-wide, in which new borrows, deposits, leverage and proposals are refused while repayments, liquidations and exits keep working.

Liquidity and yield

Term	Meaning
Two-sided liquidity	A deposit of both tokens of a market at the current reserve ratio. It mints srLP.
Single-sided liquidity	A deposit of one token into a market's hedged vault for that token. It mints hLP.
srLP	The senior LP share, from two-sided liquidity: a slice of the whole reserve, minted against a deposit of both tokens. Withdrawals leave unpaid interest out; it pays the holders who earned it.
jrLP	The junior, first-loss share. It owns a slice of the same reserve shares at its own exchange rate, takes the junior income share and absorbs funded losses before srLP.
Tranche	One of the two claims on a market's LP capital: senior, which loses only after junior capital is gone, or junior, which takes losses first for a larger share of income.
Junior income share	The operator-adjustable share of LP swap fees and interest paid to Junior LP: 50% by default, between 10% and 90%.
Junior seed	Permanent jrLP that nobody owns or can redeem: a thousandth of the creator's first-deposit shares, grown by its own income, exit fees and jrLP burned outside the program.
Exit notice, exercise window	Leaving Junior LP takes a request, a notice of seven to ten days that lengthens as more jrLP waits to leave, then a two-day window to convert back to srLP.
Generation	One jrLP mint. A loss that consumes all junior capital wipes it out; `initialize_junior` opens the next.
Income book	Per asset, the unpaid interest booked as it accrues and split at once between Junior LP, ordinary srLP and the hLP vaults; borrower payments pay it out in proportion.
hLP	The hedged LP share, from single-sided liquidity: a share of one of the two hedged vaults, base or quote. Each borrows the other token, holds both as srLP and re-sizes the loan after every trade, so it keeps one token's price exposure with LP income.
Yield account	Per owner, market, LP mint and asset: checkpoints against the growth indexes and the yield claimable by that owner.
Growth index	A per-share accumulator that credits every eligible share its slice of a fee or interest payment without per-holder bookkeeping.
Compounding share	The portion of LP-owned fees that enters reserve principal instead of becoming claimable yield.

Curve and fees

Term	Meaning
Centre	The persistent price the concentrated bands are built around; follows the market through a moving average and a controller.
Peak amplification	Depth in the core band as a multiple of the constant-product tail; 1x is exact constant product.
Core, shoulder, tail	The three depth regions: full extra depth near the centre, half the extra depth beyond it, and the full-range constant-product tail everywhere else.
Core half-width, fade width	The width of the core on each side of the centre, and the width of each shoulder beyond it.
Base fee	The market's swap fee.
Divergence surcharge	An extra fee on trades that push the price outward from the centre, scaled by how far.
Volatility surcharge	An extra fee that rises with recent chop and decays as the market calms.
Launch schedule	A temporary premium above the base fee on a new market, decaying by time or by price milestones.
Fee asset	Which asset fees are collected in: the input, always base, or always quote.
Protected recenter reserve	Retained surcharge held in custody to fund the curve's next recentering.

Prices

Term	Meaning
Spot	The curve's marginal price at the current reserves.
Native market	A market with an oracle weight of zero: it never reads a price feed, and its prices come from its own curve and trading history.
Oracle-guided market	A market whose curve price is pulled toward one configured feed, read and checked on every price-sensitive instruction.
Oracle weight, adjustment cap	How far a guided market's price moves toward its feed, below 100%; and the furthest it may move from the native curve in either direction, above 1×.
Symmetric EMA	A two-way exponential moving average of spot with a configurable half-life.
Directional EMA	An average that snaps down to spot on a fall and eases up on a rise.
Pessimistic price	The lower of the symmetric and directional averages; used for risk.
Depth EMA, pessimistic depth	A moving average of curve depth, and the lower of observed and averaged depth.
Cached risk book	The stored observations risk checks are rolled from, so a same-transaction swap cannot steer them.
Settlement reference	A cached price the hLP vaults settle against, with a divergence guard.

Credit

Term	Meaning
Shadow curve	A constant-product tail rebuilt at the pessimistic price and scaled to pessimistic depth; the basis for borrow admission.
Impact-aware value	What a full sale of a position's collateral through the shadow curve would return.
Collateral factor	The fraction of impact-aware value a position may owe before liquidation, at most 85%; stored on the position when it borrows.
Borrow limit, liquidation limit	The liquidation limit is impact-aware value times the factor; the borrow limit is 95% of it, so an 85% factor lends up to 80.75%.
Health factor	Liquidation limit divided by debt.
Utilization	All debt in an asset over debt plus cash. Its band, 75–80% by default, steers the borrow rate; it does not cap borrowing.
Coverage signal	Junior LP capital over the debt it covers, discounted by utilization. The borrow rate rises below its band (5–6.25% by default) and can fall above it, but only while utilization is below its own band.
Daily borrow bucket	A leaky 24-hour budget for new public borrowing per asset.
Global-health contribution	A debt-capped aggregate that improves underwriting for new borrows without locking anyone's collateral.

Liquidation

Term	Meaning
Flash liquidation	Collateral is released and a bound net debt payment settles in the same transaction; any failure rolls both back. This replaces the former liquidation auction.
Liquidation discount	The discount a liquidation buyer takes on the collateral, 0.5% to 5%, larger the further health has fallen.
Liquidation charge	A fixed 300 bps solvent charge, separate from health-based liquidation discounts and caller rewards. See Liquidations.
Emergency settlement	The health-gated internal liquidation path, priced using EMA and smoothed depth with bounded incentives and loss accounting. It does not wait for an auction expiry.
Socialized loss	A funded principal shortfall after recovery. Junior LP absorbs it first; only the part beyond all junior capital is shared across a market's srLP.

Leverage and hedged vaults

Term	Meaning
Isolated leverage	A position that borrows and swaps in one instruction and is judged on its own closeout value.
Liquidation equity	Symmetric-EMA collateral value minus debt, compared with the position's stored maintenance requirement.
Maintenance margin	The position's stored minimum equity rate, weighted from its size tiers at the depth recorded when risk was added.
Leverage delegate	The second program that holds take-profit, stop-loss, entry and hLP orders and executes them through approval hooks.
Delegation	A position owner's record of which program may act on the position and which actions it may take.
Protection order	A sponsor-funded order that repays or tops up a position when its health drops to a trigger.
Funding	The interest an hLP vault pays on the debt that funds its opposite side.
NAV per share	The price of one hLP in the target asset.
Residual exposure	An unexecuted hLP rebalance carried when cash was too short to complete it.
Recovery discount	Up to 5% extra output offered to swaps that supply a vault's borrowed asset when its funding gap is large.

Governance

Term	Meaning
Operator bundle	One announced set of parameter or authority changes, applied atomically after the full notice. The operator may appoint a manager for parameters; LP tokens grant no core authority.
Family	Fees, concentration, interest controller, price/depth EMA half-lives, daily borrow limit, centre controller or junior income share.
Timelock, execution window	Maximum junior exit notice plus one nominal day of waiting, then seven days in which an eligible bundle may execute.
Stale	A bundle whose pending pointer, authority epoch, policy or committed family revisions no longer match the market.
Futarchy authority	The protocol-level account governed on MetaDAO: revenue shares, recipients, referral listings, auction settings. The reduce-only switch belongs to a separate emergency key.
Referral partner	A listed wallet or app that earns a share of protocol interest revenue on debt it referred.
Protocol auction	The sale of accumulated protocol revenue into an accepted mint, in fee and buyback lanes.

Tooling

Term	Meaning
Keeper	An off-chain service that runs permissionless jobs: liquidations, order execution, protocol revenue auctions, hLP closeouts and lifecycle tasks.
Indexer	The service that ingests program events and accounts and serves the REST API and streams.
Deployment identity	The cluster, program ID, IDL hash and protocol revision a response or a build is bound to.
Freshness	The indexer's statement of how far behind the chain a response is, and whether it is ready, catching up, reconciling or stale.
Slot	Solana's unit of time. The program measures elapsed time in slots and its economic timers assume 200 milliseconds per slot.
bps	Basis points; 100 bps is 1%.
NAD	The program's fixed-point unit, 10⁹; a "NAD" value is scaled by a billion.