> For the complete documentation index, see [llms.txt](https://docs.fermi.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.fermi.trade/04-glossary.md).

# 04 glossary

Every term used elsewhere in these docs.

### A

* **AbortTransaction** — A self-trade behavior that fails the entire transaction if the new order would match an existing order from the same Fermi account.
* **AMQ** — Asynchronous Market Queue. A Solana-program primitive where market actions are queued in program state and executed later in an application-defined order. Fermi uses an AMQ-style execution queue to enforce on-chain FIFO after POSq has produced the market sequence. See [20 - Execution Queue v5](broken://pages/be48c90533e062fae8818e133338dcf126bb706d).
* **Admission window** — The range of sequence numbers a relayer can commit at any time: `[next_sequence_to_execute, next_sequence_to_execute + admission_limit)`. Default `admission_limit` = 1024 (the per-market ring capacity).
* **ADL** — Auto-de-leveraging. Fermi does **not** use ADL; losses are absorbed by the insurance fund and then socialized as unsocialized loss across all account deposits.
* **Asks** — Sell-side order book; lower price first.

### B

* **Base** — The asset being traded; for `SOL-PERP`, the base is SOL.
* **Bank** — Per-token state account holding deposit/borrow indexes, weights, fees, and oracle ref. Source of truth for spot collateral.
* **Bids** — Buy-side order book; higher price first.
* **BookSide** — One side (bids or asks) of a perp market. Each side contains *two* trees: `Fixed` (absolute price) and `OraclePegged` (offset from oracle). Both are price-time ordered.
* **Bump** — PDA bump seed.

### C

* **Cancel** — Removes an order from the book without a fill. Frees the trader's `bids_base_lots`/`asks_base_lots` reserve.
* **CancelProvide** — Self-trade behavior: cancel the resting (own) order rather than match it.
* **Client order ID** — Optional, user-supplied 64-bit integer that echoes back on fill events. Useful for idempotent replace flows.
* **Commit** — On-chain write of an intent's hash to the v5 queue. Locks in the sequence; the payload comes later in the reveal.
* **CommitItemV5** — The 96-byte ring-buffer entry storing one committed intent: hash, sequence, ingress slot, expiry, status, retries.
* **Confirmed view** — Optimistic harness state derived only from on-chain confirmed transactions. Safe to reconcile against.
* **Optimistic harness** — Off-chain read / optimistic layer that publishes optimistic and confirmed views of the orderbook + accounts. Has no authority over execution. See [02 - Architecture](broken://pages/890697491fdf2eed943cb23b394c6638d28ed1ce).
* **CTM** — Cooperative Transaction Model. Users sign intents; POSq sequences encrypted intents over VDF ticks; the relayer commits the resulting sequence to the on-chain queue.

### D

* **DecrementTake** — Self-trade behavior: matching against your own order is allowed, but neither side pays fees.
* **Delegate** — A second pubkey allowed to sign orders for a Fermi account. Cannot withdraw or close.
* **Deposit index** — Bank-wide compounding factor; multiplied by an account's indexed balance to get native deposit amount.
* **Direct pool** — A separate per-market staging area for user-submitted intents that bypass the relayer (censorship fallback). Has a fixed slot speed-bump.
* **Dispatch** — On-chain step that calls the Fermi handler for the revealed intent (e.g. `perp_place_order`).

### E

* **EventQueue** — Per-perp-market ring buffer of `FillEvent` and `OutEvent`. Drained by `perp_consume_events` (max 8 per call). Capacity = `488` events.
* **Executor** — The off-chain worker that picks up committed intents in sequence order, builds reveal transactions, and lands them on chain. Unprivileged: a wrong reveal fails the on-chain hash check. See [02 - Architecture](broken://pages/890697491fdf2eed943cb23b394c6638d28ed1ce).
* **Expires\_at\_slot** — On-chain slot beyond which a committed intent must not execute. Enforced at reveal time.

### F

* **Fanout** — `:9094` HTTP/SSE service that re-broadcasts executor events to many concurrent subscribers.
* **FCFS** — First-come-first-served. The execution queue assigns each market a single increasing sequence and executes in that order; commit-before-reveal hides order contents until the sequence is locked, so ordering cannot be gamed. See [02 - Architecture](broken://pages/890697491fdf2eed943cb23b394c6638d28ed1ce).
* **Fermi account** — Per-user account holding token balances, perp positions, perp open orders, and serum/openbook open-orders references. A PDA owned by the trader's wallet; cross-margined.
* **FIFO** — First-in-first-out. Within a single price level, the earliest order placed has priority.
* **FillEvent** — Generated when two orders match. Contains taker, maker, price, quantity, fees, timestamps. Drained by `perp_consume_events`.
* **Fixed price order** — Limit order with an absolute price, stored in the `Fixed` tree.
* **Force close** — Admin-triggered close of a stuck position at oracle price; only when market `force_close == 1`.
* **Funding** — Periodic payment from longs to shorts (or vice versa) to peg perp price to oracle. See [09 - Funding](broken://pages/680f8696e9d9dc5f1eb5c7a817b364fad32da7f8).

### G

* **Gap** — A revealed sequence is missing at the head; the queue cannot advance until the gap fills or `gap_wait_slots` elapses (default 4 slots).
* **Group** — Top-level account binding a set of banks and perp markets to one collateral universe. Fermi has one mainnet group.

### H

* **Health** — Signed USD value of an account; positive = solvent. Three flavors: `init`, `maint`, `liquidation_end`.
* **hupnl** — Health unsettled PnL. The risk-weighted form of perp unsettled PnL that flows into the health computation.

### I

* **Impact price** — The mid-market price obtained by sweeping `impact_quantity` lots into the book; used to compute the funding rate.
* **Indexed balance** — Account-side store of token balances; expand to native via `balance × index`.
* **IntentHash** — 32-byte SHA-256 of the canonical user-intent message; tracked in the on-chain `replay_cache` for 10 slots.
* **Init health** — The strictest health flavor; required `≥ 0` to open new exposure.
* **IOC** — Immediate-or-Cancel. Match what's available, never post the remainder.
* **Insurance fund** — A USDC vault held by the group; covers bankrupt-account liabilities before socialization.
* **Isolated margin** — Not supported by Fermi; all exposure is cross-margined within a Fermi account.

### L

* **LeafNode** — One order in the book tree. Holds owner, quantity, timestamp, TIF, peg\_limit, client\_order\_id.
* **Limit order** — Posts at a fixed price; rests in the book if not crossable.
* **Liquidation** — Anyone may liquidate an account where `maint_health < 0`. Two phases: base-or-positive-PnL, then negative-PnL-or-bankruptcy.
* **Liquidation end health** — The threshold a liquidatable account must reach to exit liquidation: `liq_end_health ≥ 0`. Uses init weights with oracle prices.
* **Lot** — The smallest tradable unit of base or quote in a market. Base lots and quote lots are independent.

### M

* **Maint health** — The liquidation trigger; if `< 0`, anyone can liquidate.
* **Mark price** — The price used for unrealized-PnL and health computation; the **oracle price** for `maint`/`liquidation_end`, and the wider **stable-price band** for `init`.
* **Maker fee** — Fee paid by (or rebate to) the resting side of a trade. May be negative (rebate). Stored as `I80F48`.
* **Maker order** — Order resting on the book at the time of match.

### N

* **Native** — Smallest token unit. USDC native = `0.000001 USDC`.
* **next\_sequence\_to\_execute** — Per sub-queue head sequence; the next sequence the executor must process.

### O

* **Open interest** — Sum of absolute base lots across all longs (= sum of absolute base lots across all shorts).
* **Optimistic view** — Optimistic harness state = confirmed view + relayer-accepted intents not yet finalized on chain. Predicts the on-chain outcome in milliseconds by pre-playing the deterministic POSq sequence, AMQ queue, and matcher. Contrast **Confirmed view**.
* **OraclePegged order** — Limit order whose price is `oracle_price + offset_lots`. Stored in the `OraclePegged` tree. Has a `peg_limit` ceiling/floor and a `max_oracle_staleness_slots` validity window.
* **OutEvent** — Generated when an order is removed from the book (cancel, expiry, eviction). Drained by `perp_consume_events`.

### P

* **PerpMarket** — Per-market account holding lot sizes, fees, funding state, weights, oracle ref, BookSide and EventQueue pubkeys.
* **PerpOpenOrder** — One slot in your account tracking a single resting perp order.
* **Platform fee** — A second cut of liquidation fees that goes to the group owner (not the liquidator).
* **PostOnly** — Order type that fails if it would take liquidity.
* **PostOnlySlide** — Like PostOnly, but if it would cross, it's re-priced to one tick *behind* the best opposing price (so it always posts).
* **Price lots** — Integer price; native price = `price_lots × quote_lot_size / base_lot_size`.

### Q

* **Quote** — The settlement asset of a market; for `SOL-PERP` the quote is USD (settled in USDC).
* **quote\_position\_native** — On-account perp field; the running quote-side balance of a perp position before settlement.

### R

* **Reduce-only** — Order flag (or market mode) that disallows any trade that would *increase* absolute exposure.
* **POSq** — Fermi's verifiable sequencing scheme. In v1 it runs in single-sequencer mode, ordering encrypted transactions over VDF ticks so reordering is detectable. V2 is planned to add voting, leader rotation, and permissionless participation. See [30 - POSq Sequencing](broken://pages/ac31e9ddbaaf6ba0dc00cd9026f42e08117ea99d).
* **Relayer** — Off-chain gRPC service that accepts user intents, validates them, and commits POSq-ordered intent hashes to the on-chain v5 queue. It cannot alter, silently reorder an emitted POSq sequence, replay, or forge orders. See [02 - Architecture](broken://pages/890697491fdf2eed943cb23b394c6638d28ed1ce).
* **Replay cache** — On-chain ring of consumed `(intent_hash, consumed_slot)` pairs; rejects duplicate submissions for \~10 slots / 512 entries.
* **Reveal** — Second on-chain step where the executor provides the full intent payload, the program re-hashes and verifies, then dispatches.

### S

* **Self-trade** — A new order that would match against an existing order owned by the same Fermi account. See [13 - Self-Trade Prevention](broken://pages/efabcddfd0349e27806630879d63c011dbfb8fd8).
* **Sequence** — Per-market monotonic order index assigned at commit time. Drives FIFO execution.
* **Settle** — `perp_settle_pnl` realizes the unsettled PnL between two opposite-sign accounts in the same perp market.
* **Settle health** — A health variant used by settlement to ensure the loser can absorb the loss without becoming insolvent.
* **Settle limit** — Per-window cap on PnL settlement. Configured via `settle_pnl_limit_factor` and `settle_pnl_limit_window_size_ts` (default 24h, factor 0.2).
* **Slot** — Solana validator round (\~400 ms).
* **Stable price** — Filtered, growth-clamped reference price used for init-health risk bands; resists short-term oracle spikes.
* **Sub-queue** — One market's slot inside the v5 queue. Each market gets a `SubQueueHeaderV5` and a 1024-entry ring of items.

### T

* **Taker fee** — Fee paid by the order that crosses the book. Always non-negative.
* **TIF** — Time-in-force, in seconds from placement; `0` = no expiry. Expired orders are removed by the next matcher or `perp_consume_events`.
* **Trace** — Optimistic harness endpoint `/trace/sequence/{market}/{seq}` that lists every stage an intent passed through (and which it didn't).

### U

* **Unsettled PnL** — `quote_position_native + base_position_native × oracle_price`. Pure mark-to-market; not yet realized.
* **Unsocialized loss** — Bankruptcy loss that could not be absorbed even by socialization (because `open_interest == 0`). Tracked on `PerpMarket.unsocialized_loss`.

### W

* **Weight** — Discount applied to assets (`< 1`) or premium added to liabilities (`> 1`) when computing health.
* **Withdraw** — `token_withdraw` removes funds from a Fermi account if the post-withdraw `init_health ≥ 0`.


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