Glossary

Plain-language definitions of terms used throughout this documentation.

• AMM — Automated Market Maker. A smart contract that prices trades algorithmically from pooled liquidity instead of an order book.
• Basis point (bps) — 1/100th of a percent. 100 bps = 1.00%.
• Collateral — The asset (USDC) backing a market's shares. Held in the Collateral<T> vault. The creator must provide exactly 10,000 USDC as a ring-fenced seed.
• Complete set — One share of every outcome. Minting a complete set is how collateral enters the market.
• CLOB — Centralized Limit Order Book. The optional order_book venue for limit orders.
• Conditional Token Framework (CTF) — The design where each outcome is a token and a complete set pays out parimutuel pro-rata on resolution.
• Creator fee — Fee paid to the market creator on each trade (creator_fee_bps), fixed at 25 bps; the creator_fee_bps argument at creation is ignored.
• Dispute — A bonded challenge to a proposed resolution outcome.
• Dispute bond — Collateral posted to raise a dispute; returned if correct, forfeited if not.
• Dispute window — Period after a proposal during which disputes may be raised (dispute_window_ms).
• Escalation — When disputes exist, only the admin may finalize (governance admin module).
• Implied probability — reserve[outcome] / total_reserves; the market's price for an outcome.
• LP (Liquidity Provider) — A user who deposits collateral into the AMM pool for LP shares.
• LP shares — Proportional claim on the pool's collateral and (optionally) incentive rewards.
• Maker rebate — Discount on the protocol fee for close-out trades in the closing-only window.
• Min resolution delay — Minimum wait after ends_at before resolution is allowed.
• Oracle — Registered address permitted to propose/finalize outcomes.
• Outcome — One possible result of a market (e.g. "Yes", "No", or a candidate).
• Parimutuel payout — Winners split the trader-staked collateral pro-rata by winning-share weight: floor(your_shares × pool / total_winning_shares). The creator's seed is refunded first and is never at risk.
• Price-backed market — Short-expiry 3-outcome (Up/Down/Push) market resolving automatically against a real price (e.g. BTC Up/Down/Push).
• Protocol fee — Fee routed to the treasury on each trade (protocol_fee_bps), fixed at 75 bps.
• Push — An exact-tie outcome for price markets (within push_threshold_bps); the market is voided and both Up and Down holders are refunded pro-rata.
• Reference price — Asset price at creation; baseline for price-backed Up/Down/Push resolution.
• Redemption — Exchanging winning shares for a parimutuel pro-rata payout from trader-staked collateral after resolution.
• Referral fee — Removed. Referral fees were eliminated; no referrer is paid. The referral_fee_bps / referrals_enabled governance fields remain for backward compatibility but are unused.
• Reserve — Pooled shares of an outcome held by the AMM.
• Seed vault — Ring-fenced Collateral<T> holding the creator's 10,000 USDC seed; always refunded in full.
• Share — A claim on the collateral vault if its outcome wins.
• Treasury — Shared object holding protocol fees and forfeited bonds.
• USDC — The USDC stablecoin on Sui (6 decimals) used as collateral.
• Vault — The Collateral<T> balance backing all outstanding shares.
• Abandoned market — A market that was never resolved; after ends_at + 30 days any caller may reclaim_abandoned_seed to recover the creator's seed and sweep residual collateral to treasury.