Glossary
Key terms used throughout Paragon documentation.
A
Ask
The lowest price at which a seller is willing to sell. Also called the "offer."
B
Basis
The difference between the perpetual futures price and the underlying index price.
Bid
The highest price at which a buyer is willing to buy.
BTC.D
Bitcoin Dominance—Bitcoin's market capitalization as a percentage of total crypto market cap.
C
Circulating Supply
The number of tokens currently available and circulating in the market, excluding locked or reserved tokens.
Cross Margin
A margin mode where your entire account balance serves as collateral for all positions.
D
Dominance Index
An index measuring one asset's market cap as a percentage of a broader market cap index.
F
Funding Rate
Periodic payments exchanged between long and short position holders to keep perpetual prices aligned with the underlying index.
H
HIP-3
Hyperliquid Improvement Proposal 3—the framework enabling third-party perpetual futures deployment on Hyperliquid.
Hyperliquid
A high-performance blockchain and decentralized exchange for perpetual futures trading.
I
Index Price
The calculated value of an underlying index, used as a reference for perpetual pricing and funding.
Initial Margin
The minimum collateral required to open a new position.
Isolated Margin
A margin mode where each position has dedicated collateral, isolating risk between positions.
L
Leverage
Using borrowed capital to increase position size. 20x leverage means $100 of margin controls $2,000 of exposure.
Liquidation
Forced closure of a position when margin falls below maintenance requirements.
Long
A position that profits when the price increases.
M
Maintenance Margin
The minimum margin required to keep a position open. Falling below triggers liquidation.
Maker
A trader who adds liquidity by placing limit orders that rest in the orderbook.
Mark Price
The price used for PnL calculations and liquidation triggers, derived from index price and funding adjustments.
Market Cap
The total value of an asset, calculated as price × circulating supply.
Market Cap Index
An index tracking the aggregate market capitalization of multiple assets.
O
Oracle
A system that delivers external data (like prices) to blockchain applications.
OTHERS
A market cap index tracking total crypto market cap excluding both BTC and ETH.
Orderbook
A list of buy and sell orders for a market, organized by price.
P
Perpetual Futures
Derivative contracts that track an underlying asset with no expiration date.
Position
An open trade. A long position profits from price increases; a short position profits from price decreases.
S
Short
A position that profits when the price decreases.
Slippage
The difference between expected trade price and actual execution price.
Spread
The difference between the best bid and best ask prices.
T
Taker
A trader who removes liquidity by placing orders that execute immediately against resting orders.
Tick Size
The minimum price increment for orders in a market.
TOTAL2
A market cap index tracking total crypto market cap excluding BTC.
U
Unrealized PnL
Profit or loss on open positions that hasn't been locked in by closing the position.
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