🌐Glossary

Index of terminology and technical information related to the Vertex application.

Account Value / Equity: The total $ value of an account.

Account Value = Assets - Borrows +/- Unsettled USDC

Assets: Assets with a positive balance. You will earn interest on these automatically.

Borrows: Assets with a negative balance. You will pay interest on these automatically. You can repay them by depositing more or converting via the spot market, which you can do easily using the Repay Modal.

Unsettled USDC: The portion of open perp PnL yet to be settled. Perpetual positions are “settled” between traders, transferring USDC between winning and losing positions. Settlements are made periodically and once a position is closed.

PnL = Sum (settled USDC) + Sum (unsettled USDC)

Unsettled USDC contributes to your health and is weighted 1:1 with USDC. Unsettled USDC is visible in your Balances tables, but isn't transfered into your balances until settled. For example: if you have positive unsettled USDC it won't be considered available until settled.

Available (Spot Trading): The ‘Available’ balance is the amount of an asset you can sell without borrowing. It may not always match total balance due to open orders or assets being used as collateral. ‘Available’ is displayed when trading spot without leverage, with buying denominated in the quote currency (e.g. USDC) and selling denominated in the asset currency (e.g. ETH).

Available = balance - orders - margin consumed by liabilities and perp positions.

Max Available (Spot Trading): ‘Max Available’ represents the total quantity of an asset available for trading, including margin borrowing. The borrowing process is automated and occurs as a trade is executed. ‘Max Available’ is displayed when trading leveraged spot, with buying denominated in the quote currency (e.g. USDC) and selling denominated in the asset currency (e.g. ETH).

Available (Depositing): What you currently have available to deposit from your wallet into Vertex.

Available (Withdrawing): The available balance of an asset that a user can withdraw without borrowing or exceeding margin requirements.

Open positions or liabilities affect the amount you can withdraw without borrowing. Assets being used as margin will be locked and unavailable to withdraw.

Deposit APR: Current annualized interest rate for deposits.

Borrow APR: Current annualized interest rate for borrows.

Net APR (Balances): The average interest rate you are paid (+) or paying (-) on your balances. All assets automatically earn interest, and all borrow automatically require interest payments. Deposit and borrow rates are visible on the front-end UI.

Maintenance Margin (Funds Until Liquidation): The funds until an account is eligible for liquidation. It is calculated using the sum of maintenance margin weights for assets, borrows and perpetual positions. To avoid liquidation, users must maintain a positive balance. If the maintenance margin falls to zero, positions will be liquidated until a positive balance is restored.

Available Funds (Initial Margin): The value of funds available to trade in a subaccount. To initiate a new position, users must have a positive balance. If ‘Available Funds’ fall to zero, a subaccount cannot take on any more risk. It is calculated using the initial margin weights of collateral and positions.

Maintenance Mode: Your account goes into Maintenance Mode when it has no Available Funds left, meaning no more risk can be taken, and the only thing stopping it from being liquidated is the maintenance margin buffer. You must de-risk by closing positions or depositing more assets to get out of Maintenance Mode.

Account Leverage: The multiplier of how much margin you’re using against the value of your assets. Calculation as follows:

[sum(abs(amount) * oracle price) for all except quote)] / unweighted health

Trade Leverage (Perpetuals): Before placing a perp trade, you can adjust the trade's leverage and subsequently, your Max Position. Your Max Position is a product of your Available Funds * Trade Leverage.

For example, If you have $100 of Available Funds and set Trade leverage to 5X, this would result in a Max Position of $500 for that trade.This doesn’t mean you need to place a trade for that amount if your free collateral does not allow you to do so — it just lets you set a limit on your Max Position. You can use the slider to enter a % of that Max Position size.

Trade leverage is not to be confused with account leverage. Trade leverage is on a per-trade basis and is included to help users size their trades.

Margin Usage: The percent of your margin consumed by open positions and borrows maint. margin requirements.

Margin Usage = (Account Value - Maintenance Margin) / Account Value.

Whereby,

• 100% = account eligible for liquidation

• If no borrows / perps, margin usage = 0

Perp PnL: The sum of your Estimated PnL across all open perp positions. Perp PnL (USDC) is settled periodically into balances. This sum represents both settled and unsettled amounts. To learn more about PnL and Settlements, click here.

Est. Perp Position PnL : A position’s estimated total Profit or Loss based on average entry and the Oracle Price.

Est. Liquidation Price: The estimated price at which a position would make a user eligible for liquidation. This uses the oracle price.

Please note - Est. Liq Price only works for a move in a single underlying. For users with multiple positions, risk should be evaluated on a portfolio basis using alternative metrics.

Position Margin: An individual perp position’s maintenance margin requirements. (See ‘Maintenance Margin’)

Liquidation: If an account’s maintenance margin reaches $0, the account is eligible for liquidation. Liquidation events happen one by one, with the riskiest positions being liquidated first. Liquidations are based on the oracle price.

Liquidation Types: There are 3 types of liquidations:

• A perp position is liquidated

• A balance is liquidated - i.e a Borrow

• An LP Position is liquidated

• Some combination of the above i.e. a Spread is liquidated

The latter only happens if you have perp position and a balance/LP position composed of the perp’s underlying spot asset.

Liquidation Quote Transfer: To liquidate a position, there must be a payment (transfer) between the liquidator and the position holder. This done in the quote currency, USDC. Payments are signed as positive, meaning you received the USDC, or negative, meaning you paid. For perpetual liquidations, users should expect to see a (+) USDC payment. They will see a (-) USDC payment for borrowers since they need to pay the user for buying their borrow.

Net Liquidation Value: The net market value of the liquidation, including any closed positions and quote transfers. This is the net change in your Account Value from the liquidation event.

Oracle Price: The price of the perpetual contract across other exchanges. Used to calculate Estimated PnL.

Index Price: The price of the underlying spot asset across other exchanges. Used to calculate funding rates.

Last Price: Last traded price for the market on the Vertex. This is what's visible in the top left of the market bar.

Mid-Book Price: Average of asks and bids for the market across the top level of the Vertex orderbook.

24h change: The increase or decrease in the orderbook price over the past 24 hours.

Open Interest: The total outstanding in perpetual contracts for that market, denominated in the quote USDC.

Predicted Funding rates (1h/annualized): Funding payments are made every hour and calculated algorithmically based on the Index Price & TWAP of filled trades on the Vertex orderbook. The 1h and annualized rates display the current funding rate.

Maker Fee: The trading fee charged to orders that don’t immediately cross the book and provide (makes) liquidity. Example: Limit orders that are not immediately executed. On Vertex, maker fees are 0%. For more details, refer to the Fees section.

Taker Fee: The trading fee charged to orders that immediately cross the book and take liquidity, such as filled market orders. For more details, refer to the Fees section.

Avg. APR (LP Position): The average APR across all your LP positions based on the combination of trading fees and deposit interest.

LP Position Composition: The current underlying balances that make up your LP Position.

Pool APR: The estimated APR for this pool is a combination of the trading fees and deposit interest earned.

LP Position PnL: This is your LP Position’s profit or loss based on the current value of the position minus the entry value. This includes the fees and deposit interest earned while holding the LP position.

Impermanent Loss: Impermanent loss is a phenomenon experienced by liquidity providers (LPs) in an Automated Market Maker (AMM) system that occurs when the price of the two assets in a liquidity pool changes relative to each other. When an LP provides liquidity to a pool, they receive pool tokens in proportion to its contribution to the pool. LPs earn returns from trading fees generated by the pool, and the value of their pool tokens also fluctuates based on the price of the assets in the pool.

However, if the price of the two assets in the pool changes significantly, the value of the LP's holdings can become imbalanced relative to what they would have earned if they had simply held the assets themselves. This is because the LP has effectively been selling the asset that has increased in price and buying the asset that has decreased in price, leading to a loss in value relative to holding the assets separately.

This loss is termed "impermanent" because it disappears when the price of the assets in the pool returns to its original state. In other words, the LP will only experience permanent loss if they withdraw their liquidity from the pool when the prices of the assets are imbalanced.