Glossary
Common terms and definitions used throughout the RWA tokenization platform.
A
AMM (Automated Market Maker) A type of decentralized exchange protocol that relies on mathematical formulas to price assets, rather than order books. Our platform uses advanced AMM technology for spot trading.
APR (Annual Percentage Rate) The annual rate of return on an investment, not accounting for compounding. Compare with APY.
APY (Annual Percentage Yield) The annual rate of return on an investment, accounting for compound interest. Higher than APR when compounding occurs.
Arbitrage The practice of exploiting price differences between markets to make risk-free profits.
B
Basis Trading A strategy that profits from the price difference between the spot market and futures market.
Borrowing Taking a loan against collateral. In our protocol, users can borrow USDC against RWA tokens.
C
Call Option A contract giving the holder the right (not obligation) to retrieve their specific tokenized asset by buying back all tokens.
Collateral Assets pledged as security for a loan. If the borrower defaults, the lender can seize the collateral.
Concentrated Liquidity An advanced AMM feature allowing liquidity providers to concentrate their capital within specific price ranges for higher capital efficiency.
Custody The safekeeping of physical assets by a trusted third party. Our platform uses professional custody partners.
D
DeFi (Decentralized Finance) Financial services built on blockchain technology, operating without traditional intermediaries like banks.
Degen Slang for "degenerate" trader - someone who takes high-risk, high-reward trades.
Delta The rate of change of a derivative's price relative to the price of the underlying asset.
Delta-Neutral A portfolio construction strategy where the overall delta is zero, eliminating directional price risk.
E
ERC-20 The technical standard for fungible tokens on Ethereum. All RWA tokens follow this standard.
ERC-1967 The proxy upgrade pattern used to keep smart contracts under the 24KB size limit.
F
Flash Loan A type of uncollateralized loan that must be borrowed and repaid within the same transaction block.
Fractional Ownership Owning a portion of an asset rather than the whole asset. Our platform enables fractional ownership of luxury cars, rare collectibles, and high-value assets.
Funding Rate The periodic payment between long and short positions in a perpetual futures contract, used to keep the perp price close to spot price.
Fungible Interchangeable. All tokens of the same asset model are fungible - you don't need to track specific serial numbers when trading.
G
Gas The fee paid to execute transactions on the Ethereum network.
GMX A decentralized perpetual futures exchange that inspired parts of our perp design.
H
Health Factor A metric showing how safe your lending position is from liquidation. Above 1.0 is safe, below 1.0 triggers liquidation.
Hedge A position taken to offset potential losses from price movements. Dealers hedge inventory risk with perp shorts.
Hyperliquid A high-performance perpetual futures DEX that demonstrated perp volume exceeds spot volume 10-50x.
I
IL (Impermanent Loss) The temporary loss of funds experienced by liquidity providers due to price volatility in AMM pools.
Insurance Fund A pool of capital used to cover bad debt from failed liquidations and protocol losses.
L
Leverage Borrowing capital to increase position size. 5x leverage means controlling $500k with $100k capital.
Liquidation The forced closure of a position when collateral value falls below the maintenance margin requirement.
Liquidation Threshold The collateral-to-debt ratio at which a position becomes eligible for liquidation.
Liquidity The ease with which an asset can be bought or sold without significantly affecting its price.
Long A position that profits when prices rise. "Going long" means buying with the expectation of appreciation.
LP (Liquidity Provider) Someone who deposits tokens into an AMM pool to enable trading, earning fees in return.
LTV (Loan-to-Value) The ratio of loan amount to collateral value. 40% LTV means you can borrow $40k against $100k collateral.
M
Maintenance Margin The minimum amount of collateral required to keep a leveraged position open.
Market Maker An entity that provides liquidity by continuously quoting buy and sell prices. Our platform has a professional market maker (Justin).
MEV (Maximal Extractable Value) Profit that can be extracted by reordering or inserting transactions in a block.
MM Short for Market Maker.
N
NFT (Non-Fungible Token) A unique token representing ownership of a specific item. Our custody receipts are NFTs.
Notional Value The total value of a position. A 10x leveraged $100k position has $1M notional value.
O
Oracle A service that provides off-chain data (like asset prices) to smart contracts.
OI (Open Interest) The total number of outstanding derivative contracts (perps or options) that haven't been settled.
P
Perp (Perpetual Futures) A derivative contract similar to futures but without an expiry date.
PnL (Profit and Loss) The net profit or loss from a trading position.
Protocol The set of smart contracts and rules that govern the platform.
Put Option A contract giving the holder the right to sell an asset at a predetermined price.
R
RFQ (Request for Quote) A process where a distressed seller solicits competitive bids for their asset.
RWA (Real World Asset) Physical assets like luxury cars, rare collectibles, or art that are tokenized on-chain.
S
Short A position that profits when prices fall. "Going short" means selling (often borrowed assets) with the expectation of depreciation.
Slippage The difference between the expected price and the executed price of a trade.
Spot Market The market where assets are traded for immediate delivery, as opposed to derivatives markets.
Stablecoin A cryptocurrency designed to maintain a stable value, typically pegged to USD. We use USDC.
Staking Locking up tokens to earn rewards. Users can stake RWA tokens in our vaults to earn yield.
T
Token A digital representation of an asset on the blockchain.
Tokenization The process of converting ownership of a physical asset into digital tokens on the blockchain.
TVL (Total Value Locked) The total value of all assets deposited in a DeFi protocol.
U
USDC A stablecoin issued by Circle, pegged 1:1 to the US dollar. Our primary trading pair and collateral currency.
DEX (Decentralized Exchange) A peer-to-peer marketplace where users can trade tokens without intermediaries. Our platform uses advanced DEX technology for spot trading.
Utilization Rate In lending markets, the percentage of supplied capital that is currently borrowed.
V
Vault A smart contract that pools user funds and automatically executes a yield strategy.
Volatility The degree of price variation over time. Higher volatility = larger price swings.
W
Wallet A software or hardware tool that stores cryptocurrency private keys and allows interaction with blockchains.
Custody Partner Professional facilities that securely store tokenized luxury vehicles with insurance and authentication services.
Whale An individual or entity holding a large amount of cryptocurrency or tokens.
Y
Yield The return on investment, typically expressed as an annual percentage (APR or APY).
Yield Farming The practice of moving crypto assets between different DeFi protocols to maximize returns.
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Last Updated: October 28, 2025