> 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% to 5%.

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

**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.

**Referral:** Invite friends to register and trade by sharing your referral link. You earn a percentage of your referees' trading fees as commission, settled instantly on-chain at trade execution with no manual claim required. Referees enjoy a 5% trading fee discount.

## 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.

**Fee APY:** The compounded annualized version of Fee APR, factoring in reinvestment of earnings. Closer to your actual growth than APR.

**Net APY:** Your comprehensive annualized yield after management fee, including fees and trader PnL impact. This is the most intuitive return figure shown on the detail page.

**Performance Fee:** A management fee charged by the vault, automatically deducted from earnings. The Net APY you see is already net of this fee.

**Total Earned Fees:** Your cumulative fee earnings from a pool or vault, displayed at the top of the detail page.

**Total PnL:** Your total profit and loss as an LP, including both realized and unrealized portions. Shown in the Your Performance panel.

**Unrealized PnL:** The floating profit or loss on your current position that has not yet been settled.

**Traders' Open PnL:** The total unrealized PnL of all traders with open positions. A negative value means traders are overall losing, which is favorable for LPs.

**Remaining Deposit Cap / Remaining Withdraw Cap:** The remaining amount you can deposit or withdraw, shown as a progress bar on the detail page to help you gauge current capacity.

**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.

**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).


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://hertzflow.gitbook.io/hertzflow-docs/tutorials/glossary.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.