Ostium Documentation
  • 👋Welcome to Ostium
  • Getting Started
    • 👁️Overview
    • 🎯Introduction: Our Thesis
    • 💾Glossary
  • Ostium Trading Engine
    • 🏍️Overview
    • 📖Opening Trades
    • 🥅Holding Trades
      • Funding Rate
      • Rollover Fee
    • 📘Closing Trades
    • 📹Step-By-Step Tutorial
      • Connecting to Ostium
      • Fund Wallet/Account
      • Opening a Trade
      • Editing a Trade
      • Closing a Trade
    • 📁Order Types
  • 📈Stocks: Day Trading
  • 💲Fee Breakdown
  • Shared Liquidity Layer
    • 🏦Overview
    • 💦Liquidity Buffer
    • 📊Market Making Vault
      • Deposit
      • Withdraw
      • OLP token
    • ⁉️Risks
  • Supporting Infrastructure
    • 🏗️Overview
    • 🔮Price Oracle
    • 💻Automations
    • 💾API & SDK
  • Security
    • 🔐Smart Contract Audits
    • 💰Economic Audit
  • LEGAL
    • Terms of Use
    • Disclaimer
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  1. Getting Started

Glossary

Definition of terms used in documentation.

  • Liquidity Providers ("LPs"). Users providing liquidity to the protocol as peer-to-pool market makers and acting as counterparties to traders' net PnL.

  • Open Interest ("OI"). The total cumulative position size across traders allowed for a particular side (long/short) on a particular asset.

  • Open Interest Imbalance ("OI Imbalance"). The difference between long and short OI.

  • Open Interest Skew ("OI Skew"). OI skew can either be long (OI long>OI short) or short (OI long<OI short).

  • Ostium Liquidity Provider token ("OLP token"). An LP's share in the LP Market Making Vault, which accrues rewards directly into the token value.

  • Perpetuals ("Perps"). An onchain primitive enabling price exposure to an asset without underlying ownership thereof. Stated otherwise, a non-expiring future who's cost of holding is governed by a funding rate.

  • Position Size. The total notional exposure of a trader's position: Collateral x Leverage.

  • Profit and Loss ("PnL"). Total gains and losses incurred by the position over a specific period. A positive or negative PnL yield a profit or a loss, respectively.

  • Real World Assets ("RWAs"). A catch-all term used by crypto natives to refer to the universe of tradable assets not native to the blockchain.

  • Shared Liquidity Layer ("SLL"). The combined liquidity across both vault structures (buffer and vault) that serves to settle trader PnL and accrues trading fee rewards.

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Last updated 10 months ago

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