Glossary

Glossary of terms used in Signals v1.

Terms are used with a single consistent meaning across the docs. In particular, "tick" refers to the discrete settlement bucket defined by the outcome grid, and "price" refers to CLMSR marginal prices derived from the shared curve state.

Symbols

Common symbols used in the mechanism pages:

Symbol	Meaning
$[L, U)$	Outcome domain bounds for a market
$s$	Tick spacing
$n$	Number of ticks (bins)
$q$	CLMSR pricing state vector
$w_i(q)$	CLMSR weight for tick $i$ at state $q$
$Z(q)$	CLMSR partition sum $\sum_i w_i(q)$
$C(q)$	CLMSR cost function (potential)
$p_i(q)$	Tick price mass at tick $i$ under state $q$
$p(R;q)$	Range price mass (sum of tick prices over a contiguous range)
$\Delta C$	Fee-free trade cashflow $C(q_\text{after}) - C(q_\text{before})$
$\alpha$	Depth parameter (CLMSR scale)
$E_t$	Maker NAV (internal accounting units)
$DD_t$	Peak drawdown ratio
$\lambda$	Safety parameter for depth admissibility
$k$	Drawdown sensitivity for depth admissibility
$\Delta E_t$	Tail budget term derived from prior factors
$T_\text{set}$	Settlement timestamp for a market day
$\Delta_\text{settle}$	Oracle submission window length
$\Delta_\text{ops}$	Decision window length
$\Delta_\text{claim}$	Claim delay (enforced as sum of the two windows)
$\tau$	Finalized settlement tick for the day

Grid and settlement

• Outcome grid: The discrete tick buckets that represent a continuous outcome domain.
• Tick: One bucket on the outcome grid. Settlement is defined in ticks, not in floating-point values.
• Tick spacing: The size of each bucket on the grid; it sets settlement resolution.
• OutcomeSpec: Market definition of bounds, spacing, and decimals used to interpret settlement values and represent ranges.
• Half-open interval: Range notation $[\text{lowerTick}, \text{upperTick})$ where the lower bound is included and the upper bound is excluded.
• Settlement time: The timestamp that ends trading and anchors settlement windows.
• Settlement tick: The discrete tick index derived from the settlement value via the tick mapping rule.
• Finality: A finalized settlement tick for a market day; once finalized, the tick does not change within that regime.

Pricing and execution

• CLMSR: Continuous Logarithmic Market Scoring Rule; the shared pricing curve used to price all ticks and all contiguous ranges.
• Curve state ($q$): The vector of quantities that defines the shared curve. Every trade is a state update on this vector.
• Cost function ($C$): The scalar potential whose differences define fee-free trade cashflow.
• Tick price: The marginal CLMSR price assigned to a single tick under the current pricing state.
• Price mass: The sum of tick prices over a contiguous range; used as the instantaneous range quote.
• Range price: The same concept as price mass; the sum of tick prices over a contiguous range.
• Base cost: The fee-free cost or proceeds of a trade computed directly from the curve via a cost-function difference.
• Base price: The implied price from the curve before fees are applied.
• Fee policy: The explicit overlay applied on top of base amounts to produce effective price.
• Effective price: Base pricing result plus the fee overlay; this is the cashflow that enters realized PnL.
• Slippage: The state-dependent execution gap from moving the curve; distinct from fees.
• Depth ($\alpha$): The scale parameter that controls price impact on the curve. In the current release, depth is fixed per market at creation.
• Price impact: Change in quoted prices caused by a trade moving the shared curve state.
• Path independence: Property that fee-free trade cashflow depends only on the start state and end state, not the order of trades.

Positions and claims

• Range position: A claim on a contiguous tick interval that pays out if the settlement tick lands inside it.
• Range width: The number of ticks covered by a range; narrower ranges are more precise in tick terms.
• In-range: A position whose tick interval contains the settlement tick.
• Out-of-range: A position whose interval does not contain the settlement tick.
• Claim: An on-chain action that redeems a position after finality and claim gating.
• Claim delay: Waiting period after settlement time before claims open.
• Claim gating: The rule that claims open only after the claim delay and only after settlement is finalized.

Oracle and windows

• Oracle window: Period when signed oracle samples can be submitted.
• Oracle sample: A signed data point used to derive a settlement candidate.
• Oracle submission: Posting signed data on-chain during the oracle window.
• Settlement candidate: The valid oracle sample selected by the closest-to-$T_\text{set}$ rule for potential finalization.
• Decision window: Period after the sample window when settlement finalization becomes available and the failure path is available.
• Fallback path: Secondary settlement path used if the primary path is not acceptable for a market day.
• SettlementOpen: Derived lifecycle stage where oracle samples are admissible for candidate selection.
• PendingOps: Derived lifecycle stage where finalization becomes available and the failure flag can be set.

Maker accounting

• Batch: The daily accounting update applied to maker capital at a single boundary after settlement.
• Share price: Vault value per share for maker capital; updates on the daily cadence at the batch boundary.
• Fee waterfall: Ordered allocation of gains, losses, and fees across the capital stack at the batch boundary.
• ctUSD: Settlement and payment token used for trading costs and payouts.

Execution bounds

• maxCost: Buy-side execution constraint. A buy reverts if effective cost is greater than maxCost.
• minProceeds: Sell-side execution constraint. A sell reverts if effective proceeds are less than minProceeds.

Units

• WAD: Fixed-point scale of $10^{18}$ used for internal math.

Contracts and architecture

• Proxy: Stable entrypoint address that holds storage and delegates execution to an implementation contract.
• Implementation: Bytecode target behind a proxy; can change across upgrades.
• Module: A contract that is executed by the core via delegatecall to compose behavior (trade, oracle, lifecycle, risk, vault).
• Delegatecall composition: Pattern where module code runs in the core's storage context, so module events are emitted from the core address.
• Owner: Governance address with privileged authorization for upgrades and configuration.
• Operator: Allowlisted role that can execute permissioned lifecycle actions such as market creation, seeding, and primary settlement finalization.