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

# Glossary

| Term               | Definition                                                                                                                     |
| ------------------ | ------------------------------------------------------------------------------------------------------------------------------ |
| Alpha Token        | Native token of a Bittensor subnet. The underlying asset for MegaTAO perpetual futures.                                        |
| Bittensor EVM      | Ethereum-compatible execution layer on the Bittensor network (Chain ID: 964).                                                  |
| Collateral         | TAO deposited as security for leveraged positions.                                                                             |
| Entry Price        | The oracle price when a position is opened.                                                                                    |
| Funding Rate       | Periodic payment between longs and shorts that keeps futures prices aligned with spot. Positive rate means longs pay shorts.   |
| Initial Margin     | Collateral required to open a position. Equal to notional value divided by leverage.                                           |
| Interest Fee       | Utilization-based fee charged to both longs and shorts. Compensates vault depositors for capital at risk.                      |
| Keeper             | Automated bot that monitors and executes liquidations of unhealthy positions.                                                  |
| Leverage           | Multiplier of position size relative to margin. 3x leverage means 10 TAO margin controls 30 TAO notional.                      |
| Liquidation        | Automatic closure of a position when margin ratio falls below the maintenance margin. Incurs a liquidation fee (currently 5%). |
| Liquidation Price  | The price at which a position's margin ratio hits 10% and liquidation triggers.                                                |
| Long Position      | A position that profits when the Alpha token price increases.                                                                  |
| Maintenance Margin | Minimum margin ratio required to keep a position open. Per-market configurable (currently 10%).                                |
| Margin             | TAO deposited to open and maintain positions.                                                                                  |
| Margin Ratio       | Health indicator of a position: `(Margin + Unrealized P&L) / Notional Value`.                                                  |
| Market Order       | An order that executes immediately at the current price.                                                                       |
| Notional Value     | Total position exposure: `Margin x Leverage`.                                                                                  |
| Oracle             | On-chain contract that provides Alpha token prices derived from pool reserves.                                                 |
| Open Interest      | Total notional value of all open positions in a market.                                                                        |
| Perpetual Futures  | Derivative contracts that track an asset's price without an expiration date.                                                   |
| P\&L               | Profit and Loss. Unrealized P\&L is on open positions; realized P\&L is from closed positions.                                 |
| Short Position     | A position that profits when the Alpha token price decreases.                                                                  |
| Slippage           | Difference between expected and actual execution price.                                                                        |
| TAO                | Native token of the Bittensor network. Used as collateral and for gas fees on MegaTAO.                                         |
| Vault              | Protocol-owned liquidity pool that acts as counterparty to trades when no orderbook match exists.                              |