Glossary
- Bond: Collateral locked by a proposer or disputer during event market resolution.
- Collateral: The token you deposit into a pool, such as USDC or a local mock collateral token.
- Event market: A prediction market where users trade YES or NO shares on an outcome.
- Exclusive market group: A set of linked event markets where outcomes are mutually exclusive.
- Fee pool: The optional LP reward flow that distributes trading fees to opted-in liquidity in price markets.
- Frozen price: The last valid price an oracle keeps serving while a scheduled market is closed. Positions can still be valued, closed, and liquidated against it.
- Full position: A price position mode where same-direction opens merge into one long or short bucket.
- Hard cap: A protocol price boundary that can stop an event trade from pushing a market beyond its configured limit.
- Health ratio: A price position safety score (adjusted value ÷ collateral). Lower values mean the position is closer to liquidation.
- Liquidity lot: One price-market LP deposit tracked with its own share balance and fee-pool choice.
- Margin account: A user-owned account contract that can manage same-collateral Cross positions when supported.
- Oracle: A price feed or resolution source used by TACO contracts.
- Outcome share: A YES or NO token in an event market.
- Partial fill: A trade result where only part of the requested size executes.
- Pool shares: The internal unit the pool uses to track LP claims on pool collateral (minting and redeeming liquidity). Trader positions are valued by the psi-adjusted model, not by pool shares.
- Price market: A perpetual price prediction market where users open collateralized long or short positions.
- Psi: The pool-level solvency adjustment that scales price-market payouts so shared collateral stays solvent across all longs and shorts. It is not a fee.
- Reopen grace: The fixed window after a scheduled market open during which opening positions and adding liquidity stay blocked.
- Resolution: The process that finalizes an event market outcome and enables redemption or LP settlement.
- Separate position: A price position mode where each open creates its own independent position.
- Sequencer guard: An oracle check that blocks price-dependent actions while an L2 sequencer is down or freshly restarted. Mandatory on Base mainnet.
- Test collateral: Mock collateral used only in local or testnet environments.
- Trading calendar: The per-market schedule (sessions, weekends, holidays) that moves a market between Active, scheduled-closed, and reopen-grace phases. Markets without one trade around the clock.
- Tranche: A layer of event market liquidity with its own risk depth and fee rate.
- vTACO: The virtual staking balance used to calculate fee discounts where staking is configured.