Glossary
Short definitions for reading the app and the rest of the documentation. A definition explains the concept; approved market configuration determines the actual limits.
| Term | Plain-English meaning |
|---|---|
| ADL — auto-deleveraging | A gated loss-resolution process reducing eligible opposing positions when required; not an ordinary fee |
| Anvil | A local development blockchain; its mock balances do not establish real value |
| Ask / bid | An order to sell / an order to buy |
| Backstop | Capital and rules supporting eligible default resolution; separate from ordinary maker depth. Anyone can fund it; funders receive no shares, withdrawal or income |
| Basis risk | The risk that a benchmark moves differently from the real cost or exposure someone is trying to hedge |
| Batch | Several proposed fills packaged into one on-chain settlement transaction |
| Canonical manifest | A deployment file marked verified by a read-only finalizer, carrying the chain's genesis hash and an anchor block; the only manifest shape the matcher and oracle load |
| Cap / floor | A fixed upper/lower boundary limiting a capped option's payoff |
| Collateral | Assets supporting obligations; intended V2 production collateral is USDG |
| CT / lot | The current V2 interface's contract quantity; read the registry's underlying unit and multiplier |
| DLMM | A discretized liquidity market maker: option tokens and quote cash organized into price bins |
| E — execution | Price of an actual fill; proposed matching must remain distinguishable from confirmed settlement |
| EIP-712 | A typed-signature format binding authorization to structured terms and a contract/network domain |
| Epoch | A numbered authorization or accounting period; the meaning depends on the field |
| Equity | An account's risk-valued resources after position and funding effects |
| Expiry | The time at which an option's 24 h averaging window ends and it awaits terminal settlement; trading stops 24 h earlier |
| Fair | The desk's Black-76 model value of a V3 capped spread, from the verifier mark and the published volatility floored at 24% for CMPT. A display value; nothing trades at it |
| Farming / emissions | Not a Trion feature: there is no reward token, emission schedule, staking or harvest step. Income to liquidity roles is paid only by counterparties |
| Fixing X | The immutable contractual reference determining an option's terminal payoff: the 24 h time-weighted average of the published index, sampled every five minutes, in the window ending at expiry |
| Free capital | Sleeve cash minus reserve minus unpaid settled claims; the only part a writer can redeem |
| Funding | Periodic transfers between perp sides; distinct from a trading fee |
| FOK | Fill-or-kill: all requested quantity atomically, or no fills |
| GTC | Good-til-cancelled: may rest until cancelled or the signed expiry is reached |
| I — index | Independent underlying benchmark with identity, source times and eligibility rules |
| IM — initial margin | Required support for new exposure |
| IOC | Immediate-or-cancel: execute eligible immediate quantity; do not rest the remainder |
| L — last | Most recent chain-confirmed execution; not a missing-index substitute |
| Leverage | Exposure relative to supporting equity; it amplifies loss as well as gain |
| Liquidation | A risk-triggered closeout process; it still depends on eligible prices and executable liquidity |
| Locked / free (V3) | locked is short contracts × $0.50 summed over series; free = cash − locked is what an account may withdraw or spend on premium |
| M — mark | The accepted risk reference used for perp equity and margin |
| Maker / taker | A participant supplying resting liquidity / one consuming it |
| Maker rebate | Perp design only: a share of the taker's fee credited to the maker's account cash at settlement; funded from collected fees, never from new tokens. The V3 options book has no rebate; its maker fee is 0 |
| MM — maintenance margin | Continuing support requirement used in liquidation eligibility |
| Notional | Exposure size after quantity, price, lot and multiplier conversion; not the deposit itself |
| OI — open interest | Outstanding position exposure; not trading volume. On V3 it equals total long contracts, always equal to total short contracts |
| Oracle | The mechanism bringing external observations into contract-usable form. In V2: a keyless publisher plus three independent one-key signer services, each reproducing payloads from its own observations |
| PnL | Profit and loss; unrealized PnL changes before closing a position |
| Post-only | Instruction to rest as maker liquidity, not immediately consume an opposing order |
| Premium | Price paid for an option claim; not the underlying resource price. On V3 it is paid by the buyer to the writer at the fill, minus that side's fee. In V2 premiums go entirely to the writer sleeve and reach writers as share value |
| Quorum | Required number of authorized signers (2 of 3); not proof that their underlying observations are true |
| Reference app | The read-only public site at app.trion.market showing source observations; not a signed index, not a market, no wallet or order path |
| Reduce-only | Instruction that can reduce existing exposure but cannot create a new opposite position |
| Reserve | V2: sleeve cash locked against open series at their maximum payoff. V3 book service: the worst case of an account's open orders, held back from free cash so any fill can settle |
| RPC | Remote procedure call: the interface a client uses to read or submit to a blockchain node |
| Sever | Finalizing without a fixing strictly after expiry plus 72 hours: a fresh compatible positive NORMAL mark sets the capped payoff, otherwise maximum spread payout; HALTED blocks this path. Final and non-recourse |
| Series (V3) | One market, kind, strike, cap and expiry, listed by governance; identified by keccak256(abi.encode(chainId, exchange, marketId, kind, strike, cap, expiry)) |
| Slippage | Difference between an expected price and the attainable execution price |
| Sleeve | V2: the option writer collateral pool for one market and one expiry, and its associated accounting. V3 has no sleeve |
| Sleeve shares | Internal, non-transferable bookkeeping of a writer's fraction of the V2 sleeve; not a token. redeemFlat is the historical name of the redemption function; no FLAT token exists in V2 |
| Source clock | Whether an observation's time comes from the provider (source-issued) or from a reviewed live endpoint's HTTP Date/Age (live-response); retrieval time is never an observation time |
| Spread | Difference between executable ask and bid; an empty side means there may be no meaningful spread |
| Swap fee (DLMM) | 30–250 bps paid by a secondary-pool trader, added to the traded bin's quote reserve; LPs realise it on removeLiquidity. No separate fee claim |
| TWAP | Time-weighted average price; also a name for order execution sliced over time—different uses |
| Unpaid settled | Cash a sleeve owes to holders of a settled or severed series who have not yet claimed; excluded from writer equity |
| WAL | Write-ahead log: durable matcher event history used for replay and reconciliation |
| Width (V3) | The maximum payout per contract, $0.50 on the launch chain, and the collateral locked per short contract |
| Write | To sell an option one does not hold, opening a short position that is fully collateralized by its width |
Keep this distinction: specified ≠ implemented ≠ locally exercised ≠ deployed ≠ listed ≠ audited. On Robinhood Chain today, CMPT options are deployed and listed; the CMPT perpetual is deployed and unlisted; nothing is independently audited. See status.
Source trail: docs/spec/V2_ARCHITECTURE.md §§2–5; overdrive/shared/v2/IV2.sol; overdrive/shared/v3/OPTIONS_V3.md §1; overdrive/shared/v3/IOptionsExchangeV3.sol; overdrive/exchange/core/src/v2.ts, v3.ts, deployments.ts; overdrive/exchange/oracle/src/v2-runtime.ts, fixing-service.ts; overdrive/src/v2/options/{WriterSleeveV2,OptionEngineV2}.sol.
Repository-owned documentation · September 2026 · Educational material, not investment advice and not an audit.