> ## Documentation Index
> Fetch the complete documentation index at: https://docs.ownit.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Glossary

> Clear definitions for the trading, prop trading, and market-infrastructure terms used throughout the documentation.

| Term | Definition |
| - | - |
| **24h Change** | The instrument’s price movement over the previous 24 hours, usually shown as both an amount and a percentage. |
| **24h Volume** | The total amount or value traded during the previous 24 hours. Unlike open interest, it includes contracts that were opened and later closed. |
| **Account Bankruptcy Amount** | The deficit remaining if an account’s positions are valued at mark price and its USDC settlement balance is negative. Formula: `max(0, −Account USDC Settlement Balance)` |
| **Account Health** | An overall measure of how safely an account is funded, based on its effective collateral compared with its margin and liquidation thresholds. |
| **Account Initial Margin Requirement (IMR)** | The minimum account value needed to place an order that opens or increases exposure. The risk check may include both open positions and unfilled orders. |
| **Account Leverage** | The account’s total market exposure relative to its equity. For example, 1.63x means the account controls about \$1.63 of exposure for every \$1 of equity. |
| **Account Maintenance Margin Requirement (MMR)** | The minimum account value needed to keep existing leveraged positions open. Falling below it can place the account into liquidation. |
| **Account Summary** | A consolidated view of the account’s balance, equity, leverage, margin requirements, and unrealized profit or loss. |
| **Account USDC Balance** | The account’s settled USDC balance: net deposits plus realized P\&L and settled funding, minus withdrawals and fees. It excludes unrealized gains and losses. |
| **Account Value** | The account’s estimated net value, also called margin balance. It equals collateral value plus unrealized P\&L, assuming open positions are valued at mark price. |
| **Accrued Funding** | Funding earned or owed on an open perpetual position that has accumulated since the position’s last funding settlement or trade. |
| **APY (Annual Percentage Yield)** | The annualized return after compounding. Unlike APR, APY assumes that earned interest is reinvested. |
| **Ask Price** | The lowest price at which a seller is currently willing to sell. |
| **Automated Market Maker (AMM)** | An on-chain market-making system that lets traders exchange assets against a liquidity pool. Prices are determined by a formula rather than bids and offers in a traditional order book. |
| **Backstop Liquidation** | A more aggressive liquidation stage used when an account has already passed the normal liquidation threshold and standard risk reduction is insufficient. |
| **Balance** | The recorded cash or collateral amount in an account, generally before unrealized gains and losses are included. The precise calculation can vary by platform. |
| **Bearish** | Expecting an asset or market to fall in price. |
| **Best Day Rule** | No single trading day’s profit can represent more than 50% of the sum of your profitable days. This encourages consistent performance rather than relying on one unusually profitable trade. |
| **Bid Price** | The highest price at which a buyer is currently willing to buy. |
| **BTC** | Bitcoin. It may be traded directly or used as the underlying asset for derivatives. |
| **BTC-USDC** | A market where Bitcoin exposure is priced in USDC. In a perpetual market, traders gain or lose from BTC price movements without necessarily owning BTC. |
| **Bullish** | Expecting an asset or market to rise in price. |
| **Cancel Margin** | A risk threshold below which the platform may automatically cancel resting orders that would increase the account’s exposure. |
| **Chart** | A visual record of an instrument’s price and trading activity over time. |
| **Close / C** | The final traded price during a chart candle’s selected time interval. |
| **Collateral** | An asset pledged to support borrowing or leveraged trading. If the position becomes underfunded, some or all of the collateral may be sold or liquidated. |
| **Collateral Value** | The current USD value of the assets supporting an account. In a USDC-only account, it may be calculated as `USDC Balance × USDC Oracle Price` |
| **Countdown** | The time remaining until the next scheduled event, typically the next perpetual funding calculation or payment. |
| **Counterparty** | The participant or entity on the opposite side of a trade or financial contract. |
| **Cross Margin** | A margin mode where a position draws on all the available margin in the account, shared with other cross positions. A loss on one reduces the margin left for the others. Not available on every market; see [Markets](https://docs.ownit.xyz/resources/markets.md#margin-modes). |
| **Derivative** | A financial instrument whose value is based on another asset, rate, or index, such as a future, option, perpetual, or CFD. |
| **Discounted Unrealized P\&L** | Unrealized profit after a risk haircut has been applied before it counts as collateral. Unrealized losses are normally counted in full. |
| **Entry Price** | The average price at which the current position was established. Additional fills may change the average entry basis. |
| **Equity** | The account’s current net value after adding unrealized gains and subtracting unrealized losses and other applicable adjustments. |
| **Exchange-Traded** | Executed through an exchange that matches participants, rather than as a bilateral trade where a broker directly acts as the counterparty. |
| **Fees** | Charges related to trading or maintaining a position, such as maker, taker, routing, protocol, or financing fees. |
| **From Breach** | How far equity can fall before the account breaches: equity minus the nearer of the max daily loss and max loss floors. At zero, the account breaches. Shown in the top bar next to To target. |
| **Funding** | Periodic cash flow exchanged between long and short perpetual traders to keep the contract near its reference spot price. It is paid between traders rather than being a standard exchange fee. |
| **Funding Payment** | The actual amount paid or received at a funding event, based on the funding rate and the size of the open position. |
| **Funding Rate** | The percentage used to calculate a perpetual contract’s funding payment. A positive rate commonly means longs pay shorts; a negative rate commonly means shorts pay longs. |
| **Gold CFD (Contract for Difference)** | A derivative that tracks changes in the price of gold without transferring ownership of physical gold. P\&L is based on the difference between entry and exit prices. |
| **Gold Perpetual (XAU Perp)** | A perpetual futures-style contract that provides price exposure to gold without an expiry date. |
| **High / H** | The highest traded price during a chart candle’s selected time interval. |
| **High-Risk Margin** | A deep risk threshold indicating that an account is close to emergency handling such as auto-deleveraging. |
| **Hyperliquid** | An on-chain trading venue that provides perpetual markets, order-book execution, and related market data. |
| **Index Price / Reference Price** | An external benchmark, often built from several spot markets, used to estimate fair value and support mark-price, funding, and liquidation calculations. |
| **Indicators** | Mathematical tools applied to chart data, such as moving averages, RSI, MACD, or volatility measures. |
| **Initial Margin** | The minimum collateral required to open a leveraged position or increase exposure. It is usually higher than the maintenance margin. |
| **Insurance Fund** | A reserve that absorbs losses left by liquidated or bankrupt accounts before those losses must be passed to other market participants. |
| **Isolated Margin** | A margin mode where a position has its own margin. If it is liquidated, only that margin is lost and other positions are not affected. The only mode on some markets; see [Markets](https://docs.ownit.xyz/resources/markets.md#margin-modes). |
| **Last Resort Mechanism (LR Mechanism)** | An emergency, time-based process used when positions cannot be closed normally because liquidity is insufficient. It settles or transfers exposure to limit further losses. |
| **Leverage** | Using margin to control exposure larger than the capital committed. It magnifies both returns and losses. |
| **Limit Order** | An instruction to buy or sell only at a specified price or better. Price is controlled, but execution is not guaranteed. |
| **Liquidation** | Forced reduction or closure of a leveraged position when the account no longer meets its maintenance requirement. In lending, collateral may be sold to repay debt. |
| **Liquidation Bonus** | An incentive paid to liquidators for purchasing or repaying undercollateralized positions, usually expressed as a percentage of the collateral handled. |
| **Liquidation Price** | The estimated market price at which a leveraged position may be forcibly reduced or closed because its margin is no longer sufficient. |
| **Liquidation Threshold** | The collateral or risk level at which a borrowing position becomes eligible for liquidation. |
| **Liquidity** | The ability to trade without materially moving the price. In an AMM, it also refers to the assets deposited in a pool for traders to swap against. |
| **Liquidity Index** | A cumulative measure used by a lending reserve to track interest earned over time and calculate each supplier’s balance accurately. |
| **Long / Long Position** | A position that generally profits when the underlying asset rises and loses when it falls. |
| **Low / L** | The lowest traded price during a chart candle’s selected time interval. |
| **Maintenance Margin** | The minimum equity or effective collateral required to keep a leveraged position open. Falling below it can trigger liquidation. |
| **Margin** | Collateral committed to support a leveraged position. It is not the same as the position’s full notional value. |
| **Margin Ratio** | A measure of how close an account is to liquidation. In the source system it is `MMR ÷ Account Value`; a higher percentage is riskier, and 100% or more indicates liquidation mode. |
| **Margin Required** | The collateral needed to place a proposed order at the selected size, price, and leverage. |
| **Mark Price** | A calculated fair-value reference used for unrealized P\&L, margin, funding, trigger orders, and liquidation. It is designed to be more stable than the latest trade price. |
| **Market Order** | An instruction to trade immediately at the best available prices. Execution is prioritized, but the final price may be affected by the spread, market depth, and slippage. |
| **Max Daily Loss** | The most an account can lose within a single trading day before breaching the rule. On OWNIT it is 3% of the start-of-day balance: a snapshot of balance at 00:00 UTC, closed trades only. The resulting floor is checked against equity. |
| **Max Loss** | The most an account can lose over its whole life before breaching the rule. On OWNIT it is 8% of the starting balance: a fixed floor that does not rise with profit, checked against equity. |
| **Minimum Payout** | Once funded, available profit can be requested for payout starting from \$20. |
| **Network Risk** | The risk that a blockchain’s congestion, outages, security vulnerabilities, or other failures disrupt transactions or asset access. |
| **Open Interest** | The total number or value of derivative contracts that remain open. It measures outstanding exposure, not total trading volume. |
| **Open / O** | The first traded price during a chart candle’s selected time interval. |
| **Order** | An instruction to buy, sell, open, reduce, or close exposure under specified conditions. |
| **Order Book** | A live list of buy and sell orders waiting to execute at different prices. It shows the market’s visible supply, demand, and depth. |
| **Order Value** | The proposed trade’s total notional exposure, generally calculated from size and price. With leverage, it is larger than the margin committed. |
| **Orders** | Trading instructions that have been submitted but may still be waiting, partially filled, cancelled, or expired. |
| **Pending Funding / Unsettled Funding** | Funding that has accrued on an open perpetual position but has not yet been formally added to or deducted from the account’s settled collateral. |
| **Perpetual / Perpetual Futures / Perp** | A futures-style derivative with no expiry date. Periodic funding payments help keep its price close to the underlying spot or index price. |
| **P\&L** | Profit and loss: the amount a trade, position, or account has gained or lost. |
| **Position** | Active market exposure created by executed trades. It can be long or short and may be increased, reduced, or closed. |
| **Position Cost** | The entry-value basis of a position, calculated in the source system as `Position Size × Average Entry Price` |
| **Position Notional** | The current gross market value of a position, commonly `Position Size × Mark Price`. It measures exposure, not the margin committed or maximum loss. |
| **Price** | The quoted amount of the settlement or quote currency required for one unit of the traded asset or contract. |
| **Price Exposure** | The ability to gain or lose from an asset’s price movement without necessarily owning the underlying asset. |
| **Price Impact** | The part of an execution-price change caused directly by the trade’s size relative to available liquidity. Larger trades in thinner markets have more impact. |
| **Pro** | A platform-specific advanced order-entry mode. Its exact controls depend on the interface. |
| **Profit Target** | Applies during the evaluation phase. Once you reach a funded account, there is no continuing profit target. |
| **Prop Rules** | The limits governing a proprietary trading account or evaluation, such as max loss, max daily loss, position size, or consistency requirements. |
| **Protocol Fees** | Fees directed to the protocol or its treasury rather than paid to liquidity providers. |
| **Range** | The price interval between two selected ticks in which concentrated liquidity may be active. |
| **Range Order** | A liquidity position designed to approximate a limit order. As price moves through the selected range, one asset is gradually converted into the other. |
| **Reduce Only** | An order instruction that can only reduce or close an existing position. It cannot increase exposure or open a new position in the opposite direction. |
| **Reserves** | The asset balances held by a liquidity pool. In a constant-product AMM, reserve levels affect both available liquidity and the quoted exchange price. |
| **Risk Admin** | A person, group, or automated system authorized to adjust protocol risk parameters without waiting for a full governance vote. |
| **Risk Score** | A platform-specific numerical measure of account health. In the source system, lower is safer and a score around 1000 is close to liquidation. |
| **Self-Trade Prevention** | Matching-engine logic that stops a trader’s incoming order from executing against the same trader’s resting order. |
| **Settlement** | The process of calculating and transferring cash, collateral, assets, profits, or losses after a trade or contract event. |
| **Short / Short Position** | A position that generally profits when the underlying asset falls and loses when it rises. |
| **Size** | The quantity of an asset or contract being ordered or held. In derivatives, it represents exposure and does not necessarily mean the underlying asset is owned. |
| **Slippage** | The total difference between the expected price when an order is submitted and the actual average execution price. It may reflect price impact, spread, and market movement before execution. |
| **Spot Price** | The current market price for immediate purchase or sale of an asset. |
| **Spread** | The difference between the best bid and best ask. A narrower spread generally indicates lower immediate trading cost and better liquidity. |
| **Start-of-Day Balance** | A snapshot of the account’s balance taken at 00:00 UTC, from closed trades only. It excludes unrealized profit or loss, so a position held through midnight does not change it. |
| **Starting Balance** | The account’s balance at purchase, before any trading. The max loss floor is measured from it. On an evaluation, the profit target is measured from it too; a funded account has no profit target. |
| **Subaccount** | A separate child account controlled by the same main wallet or authority. It can be used to separate strategies, balances, or isolated risk. |
| **Symbol** | The identifying code for a traded instrument, such as BTC-USDC or XAUUSD. |
| **Take Profit / Stop Loss (TP / SL)** | Exit instructions attached to an order or position. Take profit closes or reduces exposure at a profit target; stop loss does so at a loss threshold. Execution can differ from the trigger price in fast markets. |
| **Tick** | A discrete permitted price boundary. In concentrated-liquidity AMMs, ticks also define where a liquidity position starts or stops being active. |
| **Tick Interval** | The price space between two neighbouring active ticks. |
| **Timeframe** | The period represented by each chart candle or the visible chart range. For example, 1h means each candle covers one hour. |
| **Total** | The cumulative order-book quantity available from the best price through a selected price level, used to show market depth. |
| **Trades** | A record of completed transactions, as distinct from orders that are still waiting in the order book. |
| **Underlying Asset** | The asset, rate, or index whose value determines the price of a derivative. |
| **Unrealized P\&L** | The estimated profit or loss on open positions at the mark price, including applicable accrued funding. It becomes realized when exposure is closed or settled, and actual execution may differ. |
| **USDC** | A stablecoin designed to track the U.S. dollar. It may serve as a quote currency, collateral asset, or settlement currency. |
| **USDC Settlement** | A structure where collateral, profits, and losses are calculated and paid in USDC rather than in the underlying asset, such as physical gold. |
| **Utilization Rate** | The percentage of a lending reserve that is currently borrowed. Higher utilization generally indicates stronger borrowing demand and less idle liquidity. |
| **Value** | The current monetary value of a position or holding, based on its quantity and the applicable market or mark price. |
| **Volatility** | The degree and speed at which an asset’s price changes over time. Higher volatility generally means larger and less predictable price moves. |
| **Volume** | The amount traded during a selected period. On a chart, volume bars show trading activity for each candle. |
| **XAU** | The ISO code representing one troy ounce of gold. |
| **XAUUSD** | The quoted U.S.-dollar price of one troy ounce of gold, commonly traded through spot, futures, perpetuals, or CFDs. |


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