> ## Documentation Index
> Fetch the complete documentation index at: https://docs.perpetradex.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Glossary

> Key terms for trading on Perpetra.

<AccordionGroup>
  <Accordion title="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.
  </Accordion>

  <Accordion title="Liquidity">
    The depth of orders in the book. Deep liquidity = tight spreads and minimal slippage when you trade.
  </Accordion>

  <Accordion title="Spread">
    The difference between the best bid and best ask. Tighter spread = lower cost to cross.
  </Accordion>

  <Accordion title="Maker">
    A trader who adds liquidity (e.g. limit orders that rest in the book). Often receives fee rebates.
  </Accordion>

  <Accordion title="Taker">
    A trader who removes liquidity (e.g. market orders or aggressive limits). Pays a fee.
  </Accordion>

  <Accordion title="Basis Point (bp)">
    One-hundredth of a percent (0.01%). Fees are often quoted in bps—e.g. 3 bps = 0.03%.
  </Accordion>

  <Accordion title="Unrealized PnL">
    Profit or loss on open positions based on mark price. Not realized until you close and settle.
  </Accordion>

  <Accordion title="Realized PnL">
    Profit or loss from closed trades. Moves to your balance after PnL settlement.
  </Accordion>

  <Accordion title="Maintenance Margin (MM)">
    Minimum margin required to keep a position open. Below this = liquidation.
  </Accordion>

  <Accordion title="Initial Margin (IM)">
    Margin required to open a position. Depends on size and leverage.
  </Accordion>

  <Accordion title="Funding Fee">
    Periodic payment between longs and shorts to keep perp price aligned with spot. Paid every 4–8 hours depending on market.
  </Accordion>

  <Accordion title="Cost Basis">
    Average entry price plus fees. Used to calculate unrealized PnL.
  </Accordion>

  <Accordion title="Mark Price">
    Reference price for PnL and liquidation. Derived from index price, funding, and orderbook—less volatile than last price.
  </Accordion>

  <Accordion title="Index Price">
    Volume-weighted average of underlying asset prices on major spot exchanges. Used for mark price and funding.
  </Accordion>

  <Accordion title="Last Price">
    The most recent trade price. Less important than mark price for risk calculations.
  </Accordion>

  <Accordion title="Open Interest">
    Total notional value of open positions for a market. Measures market depth.
  </Accordion>

  <Accordion title="Liquidation">
    Forced closure of a position when margin falls below maintenance. Position transfers to liquidators at a discount.
  </Accordion>

  <Accordion title="Insurance Fund">
    Protocol reserve that absorbs positions when liquidators don't take them. Funded by liquidation fees.
  </Accordion>

  <Accordion title="ADL (Auto-Deleveraging)">
    Mechanism that offsets profitable positions against Insurance Fund losses in extreme scenarios.
  </Accordion>

  <Accordion title="Self-Custody">
    You hold your own keys and control your funds. Perpetra never custodies your wallet—only facilitates trading.
  </Accordion>
</AccordionGroup>