Skip to main contentTrading Terms
Leverage
The use of borrowed funds to increase your trading position. 10x leverage means with 100,youcontrol1,000 worth of an asset.
Margin
The collateral (USDC) you deposit to open a leveraged position.
Liquidation Price
The price at which your position will be automatically closed to prevent the loss from exceeding your margin.
Slippage
The difference between the expected price of a trade and the price at which the trade is executed.
PnL (Profit and Loss)
- Unrealized PnL: Implementation profit/loss on an open position.
- Realized PnL: Profit/loss after a position is closed.
lmUSD
The token received when providing liquidity to the Insurance Pool. It represents your proportional share of the provider-funded backstop and accrues value from platform fees and trading surpluses.
Buffer Pool
The protocol-owned liquidity layer that acts as the first backstop for trader payouts before the Insurance Pool is utilized.
Insurance Pool
The secondary, provider-funded liquidity layer that acts as the counterparty of last resort.
SyntheticPerpetualRouter
The main entry point for user interactions. It coordinates between the Market and Position managers.
MarketManager
The central registry and coordinator that manages the PnL/Fee waterfall across different markets and the unified Vault.
PositionManager
An ERC-721 contract that manages the execution and lifecycle of trade positions as NFTs.
Price Oracle
A service that feeds cryptographically verified real-time market prices onchain. Lemon Markets uses a custom aggregation oracle with signature verification. 