Glossary
Market
Term
Text
Perpetual Futures
Perpetual futures are futures contracts with no expiration date. The “perpetual” status is maintained by paying/receiving the funding fee.
Everlasting Options
Everlasting options are the equivalent of perpetual futures for options which gives traders long-term options exposure without the effort, risk, or expense of rolling positions.
Power Perpetuals
A power perpetual is a perpetual derivative indexed to a power of the price of some underlying instrument. First of all, we specifically implemented the case of
p=2p=2
, i.e. the perpetuals of BTC^2 and ETH^2. Since the square of BTC price is a huge number, we downscale it to a smaller unit - milli (prefix for 1/1000). Namely, the object being traded on Deri is mBTC^2 and mETH^2, which correspond to 1/1000 of BTC^2 and ETH^2, respectively.
Base Token
Base tokens are the tokens accepted by Deri Protocol as contributed liquidity by the liquidity providers or as collateral by the traders.
Daily Funding
This is the fund fee converted to a time unit of one day. The funding that one long contract pays one short contract is always accrued on a second basis, so daily funding really means the following:
Daily funding = funding rate per second * 864000,
where 864000 is the number of seconds per day.
Please note that a positive funding fee means that longs are paying shorts, while a negative funding fee means that shorts are paying longs.
Delta (Everlasting Options Only)
The ratio of option price change to the underlying price change. Mathematically, Delta is the first-order differential of the option price as a function of the underlying price.
Funding Period
For perpetual futures, Funding period is the time period for which the funding fee (MARK-INDEX) is paid.
For everlasting options, Funding period is the time period for which the funding fee (MARK-PAYOFF) is paid. For example, if for everlasting options Funding Period = 7 days, then every second a long (short) contract pays (receives) a funding fee = (MARK-PAYOFF)/72*4*60*60
Gamma (Everlasting Options Only)
The ratio of option Delta change to the underlying price change. Mathematically, Gamma is the second-order differential of the option price as a function of the underlying price.
Index Price
Spot price of the underlying asset. The Index Prices on Deri Protocol are provided by Oracle.
Mark Price
Price of the market, given by Deri Proactive Market Making (DPMM). This is the trading price of a trade with an infinitely small trading volume (i.e. without slippage) at the current moment.
Min Trade Unit (Notional)
The volume of any trade (in terms of notional) must be an integer multiple of Min Trade Unit.
Settlement Token (Base0)
Among all the base tokens, Base0 is used as the accounting unit and to settle the PnL. Essentially, this token plays the role of “cash” in the trading business.
Theoretical Price of Everlasting Options
The theoretical price of everlasting options calculated by the model. This is used as the starting point of the DPMM (in place of the Index Price for the futures DPMM).
Total Net Position
Total long positions minus total short positions for the current trading symbol. If positive (negative), traders’ total positions on the long side are more (less) than the short side, which means the pool is passively taking a short (long) position.
Trade Price
The average price paid when trade is executed
User Account
Term
Description
Available Margin
The part of funds in your margin account that is not frozen as collateral for the open positions and thus available to withdraw.
Dynamic Effective Balance
Dynamic Effective Balance = Total discounted margin + Unrealized Pnl+ Accrued Funding Fee
Total discounted margin =∑ base token balance *base token price * discount factor
Please note that the Unrealized PnL is calculated by the mark price, which might be different from the realized pnl when the position is actually closed (due to the slippage).
Initial Margin Ratio
The percentage of the notional value that you must cover with collateral when opening a new position.
Maintenance Margin Ratio
The percentage of the notional value that you must cover with collateral to keep your open positions from being liquidated.
Margin Usage
The part of funds in your margin account that is frozen as collateral for the open positions and thus unavailable to withdraw. Margin Usage is determined by Initial Margin Ratio.
Mining Pnl
Mining Pnl is a liquidity provider’s PnL in terms of the base token that is caused by the trading activities on the involved liquidity pool. Specifically,
Mining Pnl = 20% of Transaction Fee + Funding Fee + Shared remaining margin in liquidated Positions + Traders’ loss (-Traders’ profit)
Please note that the following three parts of income are NOT included in the Mining PnL: 1. the DERI token reward
2. the interests accrued from the money market protocol (e.g. Venus) 3. the token reward by the money market protocol (e.g. XVS)
Refer to Mining for more details.
Position
Term
Description
Accrued Funding
The part of the funding fee that is accrued (i.e. recorded) but not settled yet. It will be settled at the next settlement action (usually taking place with your next trading action). If positive, the pool owes you; otherwise you owe the pool.
Entry Price
The average price for establishing the current position. If the position is established with multiple trades, then this equals the total cost of all the trades divided by the position volume.
Liq. Price(est.)
The estimated liquidation price. If the index price of the contract reaches below the liquidation price (when long) or above (when short), the trader’s account will be liquidated.
Unrealized PnL
The profit or loss that would be realized if the position were closed at the moment.
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