> For the complete documentation index, see [llms.txt](https://blackboard-fi.gitbook.io/blackboard-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://blackboard-fi.gitbook.io/blackboard-docs/resources/glossary.md).

# Glossary

Key terms used in Blackboard and on-chain trading.

## A-D

**Aster** An on-chain perpetual futures DEX. Powers Blackboard's crypto perpetual markets, margined in USDT.

**ATR (Average True Range)** The average price range over a period. Used to measure volatility.

**Builder Code** Hyperliquid's frontend fee system. Interfaces like Blackboard can charge a fee when trades are routed through them. On Blackboard, this applies to HIP-3 real-world asset markets.

**CEX (Centralized Exchange)** A centralized exchange such as Binance, Coinbase, or Bybit. The exchange holds custody of user assets.

**Cross Margin** A margin mode that uses the entire account balance as collateral. Liquidation price is further away, but the full balance is at risk.

**DCA (Dollar Cost Averaging)** A strategy of buying a fixed dollar amount at regular intervals, reducing the average cost basis over time.

**DEX (Decentralized Exchange)** A decentralized exchange powered by smart contracts, where users retain custody of their own assets.

**Drawdown** The maximum decline from peak to trough. A key metric for measuring investment risk.

## F-L

**Funding Rate** A periodic payment between long and short positions in perpetual futures markets. The mechanism that keeps futures prices aligned with spot.

**Grid Trading** A strategy that places buy and sell orders at set intervals within a price range. Effective in sideways markets.

**HIP-3** Hyperliquid Improvement Proposal 3. A protocol that lets traditional financial assets — equities, indices, FX, and commodities — trade as on-chain perpetual futures.

**Isolated Margin** A margin mode that allocates separate collateral to each position. Only the assigned margin is at risk.

**Leverage** The ratio of position size to collateral. 10x leverage means taking a $1,000 position with $100 in collateral.

**Liquidation** The forced closure of a position by the system when margin becomes insufficient. Higher leverage brings the liquidation price closer to entry.

**Long** A position that profits from price increases. Gains when the price goes up, loses when it goes down.

## M-P

**MA (Moving Average)** The average price over a given period. MA crossovers are used as trend reversal signals.

**Mark Price** The price used to determine liquidation. Calculated from the spot price and funding rate.

**pUSD** Polymarket's collateral token, backed 1:1 by USDC. Used as collateral for prediction markets and options.

**MPC (Multi-Party Computation)** A cryptographic technique that splits a private key into multiple shards, eliminating single points of failure. Used by Privy wallets.

**Non-Custodial (Self-Custody)** Not entrusting assets to a third party. Blackboard only provides the UI/UX layer and does not hold user assets.

**Order Book** A list of buy and sell orders sorted by price. Blackboard's HIP-3 markets on Hyperliquid use an on-chain order book.

**Perpetual (Perpetual Futures)** A futures contract with no expiry date. Price converges with spot through the funding rate mechanism.

**PnL (Profit and Loss)** Unrealized PnL is the paper gain/loss on open positions. Realized PnL is the actual gain/loss on closed positions.

## R-S

**RSI (Relative Strength Index)** A momentum indicator ranging from 0 to 100. Used to identify overbought (70+) and oversold (30-) conditions.

**RWA (Real World Assets)** Real-world assets — equities, indices, FX, commodities, and similar instruments. On Blackboard, these are traded as **perpetual futures** linked to the price of the underlying.

**Session Key** A temporary key delegated from your main wallet with trade execution permissions. Enables one-click trading without wallet approval for each transaction.

**Sharpe Ratio** Risk-adjusted return. Higher is better — 1+ is good, 2+ is excellent.

**Short** A position that profits from price decreases. Gains when the price goes down, loses when it goes up.

**Slippage** The difference between the expected execution price and the actual fill price. Increases when liquidity is low or volatility is high.

**Stop Loss** An order that automatically closes a position when a preset loss threshold is reached.

## T-W

**Take Profit** An order that automatically closes a position when a preset profit target is reached.

**USDC** USD Coin. A stablecoin pegged 1:1 to the U.S. dollar. The collateral asset for HIP-3 real-world asset perpetuals on Blackboard. Crypto perpetuals are margined in USDT.

**Wallet** An account on the blockchain. Assets are managed with a private key. Blackboard provides a Privy embedded wallet by default.

**WebSocket** A real-time bidirectional communication protocol. Used on Blackboard for live price feeds, order book updates, and position tracking.