> For the complete documentation index, see [llms.txt](https://docs.fluvion.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.fluvion.io/reference/glossary.md). # Glossary & FAQ A comprehensive reference for perpetual futures, risk management, and orderbook mechanics on Fluvion. *** ## Glossary of Terms ### Account Margin Ratio (AMR) The ratio between your total account collateral value (including unrealized PnL) and the sum of notional values of all open positions. When AMR drops below the Maintenance Margin Ratio (MMR), liquidation occurs. ### Auto-Deleveraging (ADL) The ultimate protocol solvency safeguard. If an insolvent trader's account goes bankrupt and exhausts the Insurance Fund, the system automatically closes out opposing profitable positions at the bankrupt position's bankruptcy price. ### Base IMR (Initial Margin Ratio) The baseline entry margin percentage required to open a position. It defines the maximum leverage available for that contract (`Max Leverage = 1 / Base IMR`). ### Base MMR (Maintenance Margin Ratio) The baseline minimum margin percentage an account must maintain. Always lower than Base IMR. ### Central Limit Order Book (CLOB) A continuous trading system that matches customer limit orders and market orders according to price-time priority. ### Cross Margin A margin mode where all available account collateral is shared across all open Cross positions, allowing unrealized profits from winning trades to automatically offset unrealized losses on losing trades. ### Free Collateral The portion of your collateral currently available to open new positions or place resting limit orders. ### Funding Rate A periodic cashflow payment exchanged between Long and Short traders to keep the perpetual contract price closely aligned with the spot Index Price. ### Index Price The volume-weighted spot price of the underlying asset aggregated across major global spot exchanges, filtered with manipulation bounds. ### Initial Margin (IM) The collateral amount required to enter a position. ### Isolated Margin A margin mode where a dedicated amount of collateral is assigned to a single position. Risk is strictly confined to that position with zero contagion to the rest of the account. ### Last Traded Price The execution price of the most recent fill on the local Fluvion orderbook. ### Limit Order An order to buy or sell at a specified limit price or better. ### Liquidator An independent market participant or automated agent that takes over under-margined positions during liquidation at a predefined discount. ### Maintenance Margin (MM) The minimum collateral value required to keep an open position active. ### Maker A trader whose limit order sits passively on the orderbook, providing liquidity to the market and qualifying for lower maker fees or rebates. ### Mark Price The fair-value price derived from the Index Price and a moving basis. The Mark Price is used for all unrealized PnL calculations and liquidation triggers to eliminate false liquidations from temporary wick spikes. ### Market Order An aggressive order executed immediately at the best available prices on the orderbook. ### Notional Value The total dollar value of a position, calculated as: ``` Notional Value = Position Quantity × Mark Price ``` ### Post-Only Order A limit order instruction guaranteeing that the order will only rest as maker liquidity. If it would execute immediately as a taker, the engine cancels it. ### Realized PnL (rPnL) The settled profit or loss after closing or downsizing a position, net of trading fees and funding payments. ### Reduce-Only Order An order execution flag ensuring that the order can only decrease or close an existing position, never expand it or open an opposite position. ### Session Key A temporary cryptographic key authorized by your primary Web3 wallet that enables instantaneous, gasless trading on the web interface without signing transactions on every order. ### Slippage The difference between the expected price of an order and the actual execution price. ### Spread The price difference between the lowest ask (seller) and the highest bid (buyer) on the orderbook. ### Stop-Loss (SL) An automated conditional order designed to close a position once the market hits a specified loss threshold to cap downside risk. ### Take-Profit (TP) An automated conditional order designed to close a position once the market hits a target profit level. ### Taker A trader whose order executes immediately against resting liquidity, paying taker fees. ### Unrealized PnL (uPnL) The floating profit or loss on an open position based on current Mark Price. ### Withdrawable Balance The actual settled USDC balance available for external withdrawal from the smart contract vault back to your connected wallet (excludes positive unrealized profits). *** ## Frequently Asked Questions (FAQ) ### 1. Does Fluvion charge any gas fees for trading? No. Thanks to cryptographic session keys, all order placements, cancellations, and modifications on the off-chain CLOB incur **zero network gas fees**. You only pay standard blockchain gas when depositing or withdrawing collateral from the smart vault. ### 2. Can I get liquidated if the Last Price wicks down? No. Fluvion strictly evaluates liquidations against the **Mark Price** (which tracks global spot index feeds), not the local orderbook's Last Price. Localized flash crashes or orderbook wick-hunting will not trigger liquidations. ### 3. What currency do I need to trade? All contracts on Fluvion are margined and settled in **USDC**. You will need USDC in your connected wallet (or deposited via Email, Solana, or EVM chains like Ethereum and Robinhood). If depositing via Solana, keep a tiny amount of SOL (0.02 SOL) for vault gas; if depositing via EVM, keep a small fraction of native gas for deposit approval. ### 4. Can I hold Long and Short positions at the same time? Yes! By leveraging Cross Margin and Isolated Margin simultaneously, you can hold both a Cross long position and an Isolated short position on the same asset (e.g. `SOL-PERP`) with completely independent margins and liquidation prices. ### 5. Where do my deposited funds reside? Your funds reside directly inside the Solana smart contract vault. The off-chain engine manages order execution, while balances and withdrawals are settled on-chain. --- # 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. 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