Glossary
| Term | Meaning |
|---|---|
| Yesterday contract | A funded agreement between a Contract seller and Contract buyer, with terms fixed for that fill |
| Contract seller | The participant seeking a conditional sale or purchase; also called the issuer |
| Contract buyer | The participant paying a positive Contract price for the opposite capped exposure |
| Contract price | The buyer’s contribution, added to conversion output and locked |
| Sell yesterday | The issuer provides BTC; conversion and settlement use USDC |
| Buy yesterday | The issuer provides USDC; conversion and settlement use BTC |
| Reference size | The BTC size used in calculations; one unit represents 1 BTC, not guaranteed delivery |
| Target receipt | A native-asset target; it fixes the contract’s funded maximum or triggers a direct swap when conversion meets it |
| Fixed Contract price | A positive buyer payment fixed in the payout asset; the funded maximum changes with conversion output |
| Native asset | The actual asset in which an amount is defined, rather than a displayed equivalent |
| Direct swap | A met target that returns all actual output to the issuer, without a contract, buyer, or later settlement |
| Market order | An order that fills now within chosen Contract price slippage and cancels the unmatched remainder |
| Limit order | An order with strict terms that can wait until filled, canceled, or expired; it has no slippage |
| Slippage | How much worse a market order’s Contract price may be than the best available offer |
| Fill | An executed part of an order; a contract fill locks its own independent terms |
| Partial fill | Execution of less than the full open order size |
| K | Yesterday’s full UTC-day reference, fixed for today’s trading |
| S | Effective conversion price at execution |
| H | Tomorrow’s full UTC-day average used for settlement |
| Entry gap | The absolute percentage distance of S from K, measured against K |
| Split rate, q | The per-fill factor in the buyer payout formula; currently max(0.1, half the percentage-point gap) |
| Direction band | The strict gap below 0.5% where both contract directions can fill |
| Funded maximum or cap | Conversion output plus buyer payment; the most that fill can pay in total |
| Gross payout | The assets received at settlement, before subtracting an entry amount |
| Net result | A payout minus a named entry amount or comparison; costs must be stated separately |
| Reference adjustment | The difference between reference receipt and funded maximum; an explanation, not another transfer |
| Available balance | Funds ready to use or withdraw |
| Reserved balance | Funds set aside for an open order |
| Locked balance | Funds committed to an unsettled contract fill |
| Settlement credit | The allocation added to an available balance after a valid settlement |
| Withdrawal | Moving available assets to the owner’s wallet |
| TWAP | Time-weighted average price; each price counts for the time it applies |
| Oracle | A system that provides outside data to a smart contract |
| Finalization | Completing and validating a value so it can be used under the protocol rules |
| Indicative quote | A dated estimate for education, not an executable offer or authorization |
| UTC | The shared time standard used to define every trading and averaging day |
| Satoshi | One hundred-millionth of a BTC |
See the worked examples for these terms in use.