Glossary

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Trading Terms

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Leverage

The use of borrowed funds to increase your trading position. 10x leverage means with $100, you control$1,000 worth of an asset.

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Margin

The collateral (USDC) you deposit to open a leveraged position.

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Liquidation Price

The price at which your position will be automatically closed to prevent the loss from exceeding your margin.

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Slippage

The difference between the expected price of a trade and the price at which the trade is executed.

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PnL (Profit and Loss)

• Unrealized PnL: Implementation profit/loss on an open position.
• Realized PnL: Profit/loss after a position is closed.

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Platform Terms

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$LEMON Token

The native governance and utility token of the Lemon Markets protocol, deployed on the Base network.

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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.

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Buffer Pool

The protocol-owned liquidity layer that acts as the first backstop for trader payouts before the Insurance Pool is utilized.

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Insurance Pool

The secondary, provider-funded liquidity layer that acts as the counterparty of last resort.

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SyntheticPerpetualRouter

The main entry point for user interactions. It coordinates between the Market and Position managers.

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MarketManager

The central registry and coordinator that manages the PnL/Fee waterfall across different markets and the unified Vault.

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PositionManager

An ERC-721 contract that manages the execution and lifecycle of trade positions as NFTs.

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Price Oracle

A service that feeds cryptographically verified real-time market prices onchain. Lemon Markets uses a custom aggregation oracle with signature verification.