Order Book
Order Book
A list of buy and sell orders organized by price. The central limit order book (CLOB) matches orders when bid and ask cross.
Liquidity
Liquidity
The depth of orders in the book. Deep liquidity = tight spreads and minimal slippage when you trade.
Spread
Spread
The difference between the best bid and best ask. Tighter spread = lower cost to cross.
Maker
Maker
A trader who adds liquidity (e.g. limit orders that rest in the book). Often receives fee rebates.
Taker
Taker
A trader who removes liquidity (e.g. market orders or aggressive limits). Pays a fee.
Basis Point (bp)
Basis Point (bp)
One-hundredth of a percent (0.01%). Fees are often quoted in bps—e.g. 3 bps = 0.03%.
Unrealized PnL
Unrealized PnL
Profit or loss on open positions based on mark price. Not realized until you close and settle.
Realized PnL
Realized PnL
Profit or loss from closed trades. Moves to your balance after PnL settlement.
Maintenance Margin (MM)
Maintenance Margin (MM)
Minimum margin required to keep a position open. Below this = liquidation.
Initial Margin (IM)
Initial Margin (IM)
Margin required to open a position. Depends on size and leverage.
Funding Fee
Funding Fee
Periodic payment between longs and shorts to keep perp price aligned with spot. Paid every 4–8 hours depending on market.
Cost Basis
Cost Basis
Average entry price plus fees. Used to calculate unrealized PnL.
Mark Price
Mark Price
Reference price for PnL and liquidation. Derived from index price, funding, and orderbook—less volatile than last price.
Index Price
Index Price
Volume-weighted average of underlying asset prices on major spot exchanges. Used for mark price and funding.
Last Price
Last Price
The most recent trade price. Less important than mark price for risk calculations.
Open Interest
Open Interest
Total notional value of open positions for a market. Measures market depth.
Liquidation
Liquidation
Forced closure of a position when margin falls below maintenance. Position transfers to liquidators at a discount.
Insurance Fund
Insurance Fund
Protocol reserve that absorbs positions when liquidators don’t take them. Funded by liquidation fees.
ADL (Auto-Deleveraging)
ADL (Auto-Deleveraging)
Mechanism that offsets profitable positions against Insurance Fund losses in extreme scenarios.
Self-Custody
Self-Custody
You hold your own keys and control your funds. Perpetra never custodies your wallet—only facilitates trading.