Glossary of Terms and Definitions

Term	Definition
Account Leverage	Total Notional Position as a multiple of Total Account Margin.
Available Margin	USDC available to place new orders.
Basis	Spread between the spot and the perpetual future price, used to calculate Basis Payment. On other exchanges referred to as Premium or Funding Rate.
Basis Payment	Exchange of payment between long and short holders of a perpetual contract based on the Basis. On other exchanges referred to as Funding Payment.
Buying Power	The maximum additional Notional Position that can be bought by using all remaining Available Margin.
Collateral	See “Margin”.
Funding Payment	See “Basis Payment”.
Funding Rate	See “Basis”.
Initial Margin	The minimum amount of USDC required to open any new position. The Initial Margin includes both open position(s) and open order(s) for leveraged products.
Insurance Fund	See “Liquidation Reserve”.
Leverage	On a trade level, the Notional Position as a multiple of Initial Margin.
Liquidation	The automatic unwinding of positions by the exchange as a result of insufficient Total Account Margin.
Liquidation Price	Price of the underlying at which the position will start to get liquidated.
Liquidation Reserve	A fund to cover losses from liquidations below the Zero Price. On other exchanges referred to as Insurance Fund.
Liquidation Reserve Manager	The entity that quotes for liquidation orders, manages liquidation risk and the Liquidation Reserve.
Margin	Assets on the exchange that can be used to fund a trade.
Margin Liquidation Trigger	Minimum amount of USDC equivalent notional required to avoid liquidation. If the Total Account Margin falls below the Margin Liquidation Trigger, the account’s positions will get liquidated.
Notional Position	USDC notional of the position size.
Position Size	Number of contracts held. Positive for long holders, negative for shorts.
Reserved Margin	The amount of Initial Margin needed for open orders only. This is currently included in the Initial Margin for all positions.
Reserved Margin Buys	The amount of Initial Margin needed for open buy orders only. Positive Reserved Margin Buys is included in the Initial Margin. Negative Reserved Margin Buys means that when the buy orders get executed, the Initial Margin will reduce.
Reserved Margin Sells	The amount of Initial Margin needed for open sell orders only. Positive Reserved Margin Sells is included in the Initial Margin. Negative Reserved Margin Sells means that when the buy orders get executed, the Initial Margin will reduce.
Selling Power	The maximum additional Notional Position that can be sold by using all remaining Available Margin.
Total Account Margin	Total USDC equivalent notional of all assets available for margin, including any unrealized P&L, less any capital required for non-margin (spot) trades.
Total Notional Position	Sum of Notional Position across all positions.
Zero Price	Price at which the margin of an account would be depleted, adjusted for liquidation fees.

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