Glossary
Every term the rest of the documentation assumes, defined once, with a link to the page that owns the mechanism.
Each term gets one definition and, where a mechanism sits behind it, a link to the page that owns it. Where two words look interchangeable and are not, the entry says so.
| Term | Definition |
|---|
| AMM | Velocity's own liquidity. It quotes continuously off its own curve and competes with market makers on every fill rather than sitting behind them as a fallback. See The AMM. |
| vAMM | The AMM's virtual construction: its reserves are accounting quantities, not tokens anybody deposited, which is what lets a perpetual market quote a price without holding the underlying. |
| Keeper | A process somebody runs that watches onchain accounts and submits transactions against them. It is a job description, not a permission: there is no keeper registry or onchain role. See Orderbook and keepers. |
| Filler | The keeper that submits the transaction matching a taker order against a maker or the AMM, and is paid the filler reward. See Keeper incentives. |
| Liquidator | The keeper that takes over part of an under-margined account's position and is paid the liquidation fee for it. Every liquidator is a keeper; most keepers never liquidate anything. See Liquidations. |
| DLOB (decentralized orderbook) | The sorted view of onchain resting orders, assembled offchain. Each keeper builds its own from the order accounts, so no copy is authoritative. The orders and the fills are onchain; the book itself is not. |
| JIT | Just-in-time. |
| JIT auction | The Dutch auction a taker order runs while its acceptable price walks from the auction start price toward the auction end price. Market makers and the AMM compete to fill it. See Auctions. |
| Maker | A party that provides liquidity, either by resting a post-only order on the DLOB or by filling a taker's auction with just-in-time liquidity. Makers earn the maker rebate rather than paying the taker fee. See Fees. |
| Taker | A party that takes liquidity already on offer, whether from a maker or from the AMM. Takers cross the spread and pay the taker fee. |
| Per-market leverage | Each perpetual market sets its own initial margin ratio, and an account or an individual position can set a stricter cap on top. The strictest applies, so an override can only make the effective limit more conservative. See Account health. |
| Builder code | Per-order monetization for third-party frontends: an account approves a builder and a maximum fee, and that fee is charged on the account's fills and paid to the builder. See Builder codes. |
| Long | A position that gains when the price of the underlying rises. |
| Short | A position that gains when the price of the underlying falls. |
| TWAP | Time-weighted average price: the average of a price series over a window rather than its latest print. |
| Term | Description | Example |
|---|
| Index price, oracle price | The price of the underlying asset as reported by the oracle configured on that market. Both names appear in the UI and mean the same thing. See Oracles. | $201.01 |
| Mark price | The price of the contract itself, taken as the midpoint of the AMM's bid and ask. It is what unrealized P&L is measured against, and it is not the oracle price. | $201.05 |
| Funding rate | The hourly payment between longs and shorts that pulls the contract back toward the oracle. Positive means longs pay shorts, negative means shorts pay longs. See Funding rates. | 0.0012% per hour |
| Open interest | The total size of all positions, long and short, in the market. | 181 SOL |
| 24h volume | The total notional traded in the market over the past day. | $1.04M |
| Term | Description | Example |
|---|
| Market | A base and quote asset pair. | SOL/USD |
| Direction | Which way the position is betting. | LONG, SHORT |
| Size | The position's base asset amount. | 2.3555 SOL |
| Notional | The position's quote asset value, size times price. | $1,000 |
| Entry price | The average price paid to acquire the position, its cost basis. | $200 |
| Exit price | The average price that closing the whole position now would realize. | $200 |
| Liquidation price | An estimate of the price at which the account becomes liquidatable, which moves with every other position and balance in the same subaccount. | None |
| P&L | Profit and loss on the position: the exit price minus the entry price, times the size. See Profit and loss. | $0 |
| Action | Opens the modal for reducing or closing the position. | ClosePosition |
| Term | Description | Example |
|---|
| Total collateral | The USD value of the account's weighted collateral plus P&L, which is what margin is measured against. Weighted, because a volatile asset counts for less than its market value. See Collateral and margin. | 101.01 |
| Unrealized P&L | The sum of P&L across open positions that has not yet been settled into a balance. | 1 |
| Unrealized funding P&L | Funding collected or paid that has accrued but not yet realized. It realizes on the account's next action in the market. | 0.01 |
| Free collateral | The collateral not committed to margin, and therefore what is available to open new risk-increasing positions or to withdraw. | 0.5 |
| Leverage | Total notional position size divided by total collateral. | 5x |
| Margin ratio | Total collateral divided by total notional position size, the reciprocal of leverage. | 20% |
| Initial margin | The margin ratio an account must be above to open a position or withdraw collateral, set per market. | 5% (illustrative) |
| Maintenance margin | The margin ratio a position can fall to before it becomes liquidatable, set per market. It is always looser than the initial requirement, and the gap between the two is the room a position has to move after opening. | 3% (illustrative) |