> For the complete documentation index, see [llms.txt](https://docs.paragon.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.paragon.trade/resources/glossary.md). # 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. ### Bounds A price band around a market's reference price within which the mark price may move. It limits abrupt mark dislocations. ### 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. ## E ### Equity Perpetual A cash-settled perpetual that tracks the price of one share of a stock, conferring no ownership, voting, or dividend rights. ### External Price The price derived from external market sources while a market's underlying is trading; it serves as the oracle price during covered sessions. ## F ### Funding Multiplier A per-market scaling factor applied to the funding rate. Values below 1 dampen funding relative to the raw basis. ### 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 ### Impact Price Difference (IPD) A measure of where order-book liquidity sits relative to the oracle price, used to advance the oracle when external pricing is unavailable. ### 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 $5,000 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 unrealized PnL, margin, and liquidations — a manipulation-resistant median of oracle and order-book inputs. ### 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 ### Open Interest Cap (OI Cap) The maximum open interest allowed in a market. Once reached, new positions cannot open until open interest falls back below the cap. ### Oracle A system that delivers external data (like prices) to blockchain applications. ### OTHERS A market cap index tracking total crypto market cap excluding the top 10 assets. ### 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. ### Portfolio Margin A margin mode where positions across multiple markets are margined together, allowing unrealized gains on one position to offset margin requirements on another. See [Hyperliquid Portfolio Margin](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/portfolio-margin). ### 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. ### True Float Paragon's open-source methodology for transparent, auditable circulating-supply figures used in index calculation. ## U ### Unrealized PnL Profit or loss on open positions that hasn't been locked in by closing the position. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.paragon.trade/resources/glossary.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.