Glossary
The words these docs use, each in one place.
AmPO. Amortizing Perpetual Option, Runner's product. It has no expiry, and its quantity halves every half-life. The AmPO.
Ask. A sell on the book. Bid. A buy on the book.
Available. The balance you can withdraw or trade with right now. Not reserved by a resting order and not locked in a writer pool.
Base token. The token an option is on. Quote token. The token premiums and strikes are paid in, USDC.
Call. The right to buy the token at the strike. Calls, puts and exercise.
Close-only. How every market reads while the protocol has paused opening: positions can be closed, sold, exercised and claimed, and nothing new opens. The book and the curve.
Collateral. What a writer locks behind an option, the tokens for a call or the strike for a put. Collateral and the writer pool.
Curve. A maker's quote curve on one token, up to 128 series-sides, each a mid and up to eight regions. One per maker per token. The book and the curve.
Density. A curve region's size, in current lots.
Discrete order. A limit order at one premium for a fixed quantity, as opposed to curve paint. The book and the curve.
Dust. A quantity that decay has rounded down to zero whole lots. Any touch of the series clears it. There is no dust threshold: anything that still holds a lot is not dust.
Exercise. Using an option, by paying the strike for the tokens (call) or delivering the tokens for the strike (put). You can exercise at any time, any whole number of lots, one or more.
Half-life. The time over which every open quantity in a market halves. Fixed per market.
Ladder. One side of one option type at one strike, such as call bids or put asks. It fills in price-time priority.
Long. Holding options. On the Leverage page, LONG also names the bullish side, which buys calls.
Lot. The unit of quantity, a power of ten of the token's smallest units, chosen per market when it is created and never changed. Every price on the market is per lot. Prices and lots.
Maker. The side of a fill whose order or paint was resting. Taker. The side that crossed it. Fees.
Mid. The premium a curve series-side's regions are offset from.
Minimum exercise. One lot. There is no minimum value.
Minimum fill. A floor in USDC, fixed per market, under any order or region.
Notional. What a fill's fee is charged on, from the option's own terms: the strike plus the premium for a call, the strike for a put. Fees.
Pause. A protocol-wide stop on one family of instructions: listing, opening, trading, deposits, withdrawals or settlement. Cancels and closes are never paused. The book and the curve.
Paint. Publishing curve regions. A region reserves nothing of its own; the maker's paint reserve on the token backs every region at the moment of each fill, and must cover the largest single region when it is painted.
Paint reserve. What a maker sets aside, per token, for its curve paint: withdrawals and orders cannot touch it, fills draw it down, and the maker tops it up or releases it with a curve update.
Premium. The price of an option, paid once by the buyer to the writer. On Runner, quoted in USDC atoms per lot of the market; the desk shows it per token.
Put. The right to sell the token at the strike.
Reduce-only. An order or region that may only close an existing position.
Region. One price level of a curve series-side, made of an offset from the mid and a density.
Routed exercise. How the desk exercises. It borrows, exercises and swaps in one transaction, and you end in one token.
Series. One market, one strike, call or put. Positions in one series are fungible.
Series-side. A series and a book side (CallBid, CallAsk, PutBid or PutAsk). The unit a Curve quotes.
Short. Having written options. On the Leverage page, SHORT names the bearish side, which buys puts and writes nothing.
Strike. The fixed price of the swap an option grants, in USDC atoms per lot of the market; the desk shows it per token. A market lists only the points of its strike grid.
Strike grid. The prices a market lists strikes at, fixed when the market is created: a mid, in USDC atoms per lot, and a step, in tenths of a percent. The points are the mid times one plus the step, raised to a whole power and rounded to the nearest atom, so neighbours sit one step apart whatever the price. The chain refuses a strike that is not a point of the market's grid.
Trading account. Your balance and positions on the exchange. Created by your first deposit.
Writer. Whoever sells an option they do not hold. Writer pool. The shared pool all writers of one series hold shares of. Assignment is pro rata across it.