Glossary

Boundary

An upper or lower price level defining a Vanilla Boundary Perp. The upper boundary crosses when the mark reaches or exceeds it. The lower boundary crosses when the mark reaches or falls below it.

Chosen Boundary

The boundary selected by the user. Crossing it first produces Resolved — Won.

Non-Chosen Boundary

The other boundary. Crossing it first produces Resolved — Lost.

Stake

The USDC committed to a position. It is the position's maximum loss and becomes part of the book's hedge collateral.

Fixed Payout

The gross liability recorded after a win, including the returned stake. It is fixed when the position opens. A last-resort socialized-loss adjustment can reduce the final amount paid during insolvency.

Protocol Fee

A fee charged on top of the stake at opening. It accrues separately from assets backing positions and LP shares.

Buyback

A contract-quoted early close of an active position. Accepting it pays the quoted amount and produces Resolved — Closed Early.

First Touch

The first qualifying stored or in-call mark reading at or beyond one of the two boundaries.

Book

An isolated Boundary Perps contract instance with its own assets, liabilities, positions, LP buffer, risk controls, and HyperCore hedge account.

Open Interest

The sum of stakes across active positions in one book. It is capped by maxOI.

Net Exposure

For one underlying, the signed sum of active positions' hedge deltas. This is the exposure the protocol hedges in that underlying's perpetual.

Hedge Notional

The summed absolute notional of the protocol's per-underlying net hedge positions.

Buffer

LP-funded USDC capital that supplements user stakes, supports hedge margin, and absorbs hedge and cost variance.

Book Assets

The book contract's payout-backing USDC plus its HyperCore account equity. Accrued protocol fees are excluded.

Marked Liability

The sum of active positions' current probability-weighted payouts plus resolved but unclaimed winning payouts at full value.

NAV

The net asset value belonging to LPs:

NAV = book_assets - marked_liability

Book Shortfall

The positive amount by which marked liabilities exceed book assets:

book_shortfall = max(0, marked_liability - book_assets)

Socialized Loss

A last-resort proportional reduction applied across affected user positions when a book cannot cover its liabilities. It distributes the shortfall according to position value rather than claim order.

Core Equity

The book's HyperCore account equity, including posted collateral and unrealized hedge profit or loss.

Spread

The pool margin included in a quote after expected funding and execution cost recovery. It combines a base spread and a signed book-imbalance adjustment.

Quote

An indicative payout and fee for one product configuration. It expires and is recomputed during acceptance.

minPayout

The minimum binding payout a user will accept. The opening transaction reverts if repricing produces a lower amount.

Mark Worker

A permissionless service that calls the contract to read and store authenticated HyperCore mark prices.

Settlement Keeper

A service that watches positions and submits permissionless settlement calls when valid crossing evidence exists.

Restricted

A circuit-breaker mode that permits only actions considered safe or corrective for the active condition.

Freeze

A circuit-breaker mode that halts most protocol actions and outflows while still allowing LP deposits and mark-worker publications.