> For the complete documentation index, see [llms.txt](https://hertzflow.gitbook.io/hertzflow-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hertzflow.gitbook.io/hertzflow-docs/tutorials/glossary.md).

# Glossary

## Trading Terms

**Market Order:** Executes immediately at the current mark price. Use when speed matters more than exact price.

**Limit Order:** Executes only when the market reaches your specified price. Guarantees your entry price but may never fill in fast-moving markets.

**Take Profit (TP):** An automated order that closes your position when the price reaches your target profit level. Capped at +2500% PnL.

**Stop Loss (SL):** An automated order that closes your position when the price moves against you, limiting your loss. Capped at -80% PnL.

**Collateral:** The USDT you deposit to back a leveraged position. Minimum 10 USDT per position.

**Leverage:** The multiplier applied to your collateral to determine position size. The maximum varies by asset class — see Market Structure for per-market caps.

**Position Size:** The total notional value of your position, calculated as Collateral × Leverage.

**Entry Price:** The price at which your position opens. Market orders use the current mark price; limit orders use your specified price.

**Mark Price:** The current oracle-validated market price, used for position valuation, PnL calculations, and liquidation checks.

**Liquidation Price:** The price at which your position is automatically closed to prevent your account from going negative. Depends on your leverage, fees, and maintenance margin.

**Maintenance Margin Requirement (MMR):** The minimum collateral you need to keep a position open, calculated as Size / Max Leverage + Accrued Fees.

**Net Rate:** The combined hourly funding fee and borrow fee, shown as an annualized percentage. Positive = you receive; negative = you pay.

**Funding Fee:** A periodic payment between long and short traders based on market imbalance. The larger side pays the smaller side.

**Borrow Fee:** An hourly fee you pay to liquidity providers for using their capital as leverage. Rate increases with pool utilization.

**Price Impact:** A fee based on pool imbalance when you trade. HertzFlow uses a deferred model: zero at entry, settles at close. Capped at 50 bps (0.5%).

**Open Interest (OI):** The total notional value of all open positions, tracked separately for long and short sides.

**Available Liquidity:** The remaining pool capacity for new positions on each side.

**Slippage Tolerance:** The maximum price deviation you'll accept between your expected price and actual execution. Default 0.5%, adjustable 0.1%–5%.

**Keep Leverage:** A toggle for partial closes. Off = reduces size while keeping collateral (deleverages). On = reduces size and collateral proportionally (maintains leverage).

**Guaranteed Execution:** Your TP and SL orders execute at the exact trigger price you set, even if the market gaps past it. No slippage on TP/SL.

**Hyper Leverage (Hyper Lev):** A trading mode with zero open/close fees. Instead, you share a portion of your profits with the protocol. Market orders only. Limit orders and collateral withdrawal are disabled. Fully isolated from Normal mode.

**Loss Rebate:** A partial reimbursement for Normal mode traders who open on the weaker side of OI skew. Accrues during your position and settles at close. Not available in Hyper Lev mode.

**Profit Share Factor:** In Hyper Lev mode, the fraction of profits you keep at close. Ranges from 20% at < 1% ROI to 90% at > 2500% ROI.

**Dual-Bound Stop Loss:** A Hyper Lev requirement — your stop loss must fall between −80% and −30% PnL. Both upper and lower bounds are enforced.

## Rewards Terms

**Leaderboard:** Public ranking of traders by Volume or PnL across Monthly, Weekly, and All Time windows. Shows the top 100 per dimension.

## Liquidity Provision Terms

**HzLP:** HertzFlow Liquidity Provider token. Represents your proportional ownership of a market-specific pool. Minted when you deposit, burned when you withdraw. *At the contract and SDK level this is the **HM token** (MarketToken) — e.g. `sdk.orders.createHmDepositTxn`.*

**HzV:** HertzFlow Vault token. Represents your share in a vault that aggregates liquidity across multiple markets. *At the contract and SDK level this is the **HLV vault** (GLV) — e.g. `sdk.orders.createHlvDepositTxn`.*

**Pool AUM:** Assets Under Management — the total pool value including deposited USDT, accrued fees, and net unrealized trader PnL.

**HzLP Price:** Your token's value, calculated as Pool AUM / Total HzLP Supply. Goes up as fees accrue and traders lose; goes down when traders profit.

**TVL (Total Value Locked):** Current pool AUM in USD — the total liquidity available for trading.

**Fee APR:** Annualized yield from trading fees only (open, close, borrow, liquidation). Excludes PnL and funding. The most stable yield metric.

**Total APY:** Comprehensive yield including all sources: fees + trader PnL impact. More volatile than Fee APR but reflects your actual returns.

**Max AUM:** The protocol-configured ceiling for each pool's total liquidity. Prevents over-concentration and maintains market balance.

**PnL Factor:** A risk parameter that limits trader unrealized profit relative to pool AUM. Three variants control deposits, withdrawals, and trader payout caps.

**Reserve Factor:** A risk parameter ensuring enough liquidity remains to cover open positions. Constrains withdrawals when utilization is high.

**Utilization:** The percentage of pool liquidity actively backing open positions. High utilization (>70%) means higher borrow fees for LPs but also limits withdrawals.

**Isolated Pool:** A market-specific liquidity pool with independent risk parameters. Each pool's performance is unaffected by other markets.

**Automatic Rebalancing:** The protocol automatically splits every LP deposit 50/50 between long and short collateral, regardless of current OI distribution.

**Keeper:** An automated bot that executes deposits, withdrawals, and position settlements on-chain. Ensures fast settlement (typically < 10 seconds).

***

For common error messages and troubleshooting steps, see [Troubleshooting](/hertzflow-docs/tutorials/troubleshooting.md).


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