Glossary

Term	Meaning
Ask	An offered selling price
Basis risk	Mismatch between the event contract and the exposure being hedged
Bid	An offered buying price
CLOB	Central limit order book for matching buy and sell orders
Collateral	Asset backing the contract's defined payout
Complete set	One Yes share and one No share for the same condition
Depeg	Deviation from a specified peg or reference relationship
Event	Group of related markets
Exposure	Sensitivity of a position to a price, cost, event, or other condition
Funding	Periodic transfers associated with a perpetual contract under the venue's rules
Gross payout	Amount received at settlement before deducting purchase cost and other costs
Hedge	Position intended to offset some loss from another exposure
Impermanent loss	Difference between an LP position's asset value and holding the corresponding initial assets, under the comparison assumptions; fees are a separate component
Limit order	An order that executes only at a specified price or better
Liquidity	Executable buying and selling interest available at different prices
Maker	Participant whose resting order supplies liquidity
Market	Tradable question with its own outcomes and resolution rules
Market-implied probability	Probability interpretation of a traded price, subject to market frictions
Net hedge contribution	Hedge payout or sale proceeds minus purchase cost and applicable costs
Observation window	Period over which the contract's condition is evaluated
Outcome share	Token representing a position in a market outcome
Premium	Informal name for the cost of purchasing a hedge; not a platform fee
Range break	Departure from a stated band under the contract's measurement rules
Resolution	Determination of the market result
Resolution source	Data or evidence designated to establish the result
Slippage	Difference between an indicative price and execution price
Spread	Difference between best bid and best ask
Taker	Participant executing against an existing order
VP	Vigilan Points