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

# Glossary

Quick reference. One sentence per term, with a link to the chapter that goes deeper.

| Term                                | Meaning                                                                                                                                                                                                                             |
| ----------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **ADL (Auto-Deleveraging)**         | Protocol-driven reduction of profitable positions to cover bankrupt counterparties when the insurance fund can't. See [Liquidations](/agentdex-docs/trading/liquidations.md).                                                       |
| **AgentDex**                        | This venue. A perpetual-futures DEX with a first-class MCP server, so AI agents trade through the same surface as humans.                                                                                                           |
| **Agent**                           | An LLM-driven client connected to AgentDex via the MCP server, scoped by an API key's permissions. See [MCP server](/agentdex-docs/developers/mcp-server.md).                                                                       |
| **Airdrop Score (AS)**              | Internal score that would be used as the basis for any future token distribution. It weighs anti-abuse, quality, regularity, and risk control over raw volume. See [Airdrop scoring](/agentdex-docs/incentives/airdrop-scoring.md). |
| **Apply map**                       | Pure function `(\text{state}, \text{op}) → \text{state}` that defines every protocol-level state transition. See [Validator and verifiability](/agentdex-docs/under-the-hood/validator-and-verifiability.md).                       |
| **Available balance**               | Free USDT, usable for new orders and new margin. Excludes locked margin and unrealised PnL.                                                                                                                                         |
| **Bankruptcy price**                | Price at which a position's margin is fully exhausted, minus a small fee reserve. Reference for ADL fills.                                                                                                                          |
| **Base / quote**                    | The base is the traded asset, such as BTC. The quote is USDT.                                                                                                                                                                       |
| **Canonical log**                   | Totally-ordered sequence of admissible operations applied to state. Public after Phase 4 of the roadmap.                                                                                                                            |
| **BridgeUpgradeable**               | On-chain custody contract holding user deposits. UUPS-upgradeable. See [Smart contracts](/agentdex-docs/under-the-hood/smart-contracts.md).                                                                                         |
| **Claimed**                         | On-chain field. USDT reserved for pending withdrawals on the bridge contract.                                                                                                                                                       |
| **Cross margin**                    | Default margin mode. A single USDT pool backs all open positions.                                                                                                                                                                   |
| **Effect map**                      | Pure function that emits a typed sequence of effects per operation. This is what indexers and audit consume.                                                                                                                        |
| **Emergency Mode**                  | Engine state triggered by \~5 min of stale index-price input. New orders and withdrawals are rejected, and the liquidator pauses. See [Mark price](/agentdex-docs/trading/mark-price.md).                                           |
| **Escape hatch (force withdrawal)** | Direct on-chain withdrawal after the timelock window if the engine is silent. See [Deposits and withdrawals](/agentdex-docs/account/deposits-and-withdrawals.md).                                                                   |
| **Fair price**                      | `index × (1 + funding_basis)`. One of three components of mark price.                                                                                                                                                               |
| **Funding**                         | Periodic settlement between longs and shorts that anchors the perp to spot. See [Funding](/agentdex-docs/trading/funding.md).                                                                                                       |
| **Index price**                     | Aggregated top-of-book from external spot venues, updated every 10 s.                                                                                                                                                               |
| **Initial Margin (IM)**             | Collateral required to open a position. `IM = position_value / leverage + fee_reserve`.                                                                                                                                             |
| **Insurance Fund**                  | Internal account that absorbs liquidation surplus and covers shortfalls before ADL fires.                                                                                                                                           |
| **Instrument**                      | A tradable perpetual contract, identified by `<BASE>_<QUOTE>_PERPETUAL`.                                                                                                                                                            |
| **Isolated margin**                 | Margin mode where a position's margin is explicitly locked, not shared with other positions.                                                                                                                                        |
| **Keychain**                        | Auth-service component that issues and verifies API keys. See [API keys](/agentdex-docs/developers/api-keys.md).                                                                                                                    |
| **Last trade price**                | Most recent fill price on AgentDex. One of three components of mark price.                                                                                                                                                          |
| **Leverage**                        | Position value divided by initial margin. Range 1–100×, capped per instrument.                                                                                                                                                      |
| **Liquidation**                     | Protocol-driven closure of an under-collateralised position via a three-step flow: avoiding, market close, then ADL. See [Liquidations](/agentdex-docs/trading/liquidations.md).                                                    |
| **Liquidation price**               | Mark price at which margin reaches maintenance margin and the engine triggers liquidation.                                                                                                                                          |
| **Maintenance Margin (MM)**         | Minimum equity to keep a position open. Below MM, liquidation triggers.                                                                                                                                                             |
| **Mark price**                      | Canonical price reference for margin, liquidations, and funding. Median of fair, SMA, and last. See [Mark price](/agentdex-docs/trading/mark-price.md).                                                                             |
| **Market Data service**             | Service that fans out normalised public and private WebSocket streams.                                                                                                                                                              |
| **Matching engine**                 | The off-chain engine that matches orders and computes fills, positions, margin, funding, and liquidations.                                                                                                                          |
| **MCP (Model Context Protocol)**    | JSON-RPC interface for LLM agents. AgentDex's headline developer surface. See [MCP server](/agentdex-docs/developers/mcp-server.md).                                                                                                |
| **On-hold**                         | USDT locked in open orders and open position margin.                                                                                                                                                                                |
| **Operator**                        | The off-chain authority running the matching engine and signing bridge updates. Today's trust assumption.                                                                                                                           |
| **Outbox**                          | Stream of state-change events emitted by the matching engine. The basis for everything downstream.                                                                                                                                  |
| **Perpetual**                       | Futures contract without expiry, kept anchored to spot by funding.                                                                                                                                                                  |
| **Points**                          | Public progress signal — dashboards, tiers, and leaderboards. Separate from Airdrop Score. See [Points program](/agentdex-docs/incentives/points-program.md).                                                                       |
| **Position value**                  | Notional in USDT, equal to `\|contracts × contract_size × mark_price\|`.                                                                                                                                                            |
| **Quest Points**                    | Points earned from community quests, subject to caps. See [Quests and referrals](/agentdex-docs/incentives/quests-and-referrals.md).                                                                                                |
| **Reduce-only**                     | Order flag. The matching engine rejects fills that would grow the position.                                                                                                                                                         |
| **Replay equivalence**              | Property that same state plus same ordered ops yields the same resulting hash. See [Validator and verifiability](/agentdex-docs/under-the-hood/validator-and-verifiability.md).                                                     |
| **Sequencer**                       | Component that orders operations into the canonical log.                                                                                                                                                                            |
| **Short token (`short_token`)**     | Non-secret stable id of an API key, used for list, revoke, and log correlation.                                                                                                                                                     |
| **SMA price**                       | `index + SMA(basis)`. One of three components of mark price.                                                                                                                                                                        |
| **State commitment**                | Hash anchoring committed state for external verifiers. Planned post-Phase 4.                                                                                                                                                        |
| **State-service**                   | Rust service syncing L1 bridge state with off-chain balances.                                                                                                                                                                       |
| **Treasury**                        | Backend account authorised to finalise withdrawals and overwrite available balances.                                                                                                                                                |
| **Unrealised PnL**                  | Mark-to-market profit or loss on open positions, not credited to available until close.                                                                                                                                             |
| **Validator**                       | Reference implementation that re-derives engine state from the canonical log. The future production engine.                                                                                                                         |
| **η (eta)**                         | Protocol parameter bounding the sensitivity of mark price to any single externally-supplied input.                                                                                                                                  |


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