Glossary

Account: The owner identity that controls capital, subaccounts, and trading permissions.

ADL: Automatic deleveraging. The final loss mechanism when order-book liquidity, backstop capacity, and insurance cannot cover a liquidation deficit.

Authoritative state: The committed Novrinex L1 record that determines balances, orders, fills, positions, and network state.

Backstop: A risk-domain account with bounded capacity to accept liquidation exposure that could not close through the order book.

Builder: A participant authorized to create an isolated exchange and native markets under Novrinex rules.

Builder exchange: A group of markets under one builder, settlement asset, risk domain, fee policy, and set of protected financial accounts.

Collateral: An asset deposited to support orders and positions and pay losses, fees, and funding.

FairFlow: The policy that gives defined block capacity to oracle updates, liquidations, cancellations, reduce-only orders, and ordinary transactions according to their financial purpose.

Funding: A periodic transfer between long and short perpetual positions used to encourage the contract price toward its index.

Indexer: A service that converts committed blocks and events into searchable market history and account views. It can be rebuilt and cannot change network state.

Initial margin: The collateral required to open a position or increase exposure.

Limit order: An order that trades only at its stated price or a better one.

Liquidation: The process of closing or transferring a position after its supporting equity falls below maintenance margin.

Maintenance margin: The minimum account support required to keep a leveraged position open.

Maker: The resting side of a fill, which supplied liquidity to the order book.

Mark price: The oracle-derived price used to calculate unrealized profit or loss, margin, and liquidation eligibility.

Novrinex Core: The financial engine that runs order books, clearing, margin, oracles, funding, liquidation, and builder-market rules.

Novrinex L1: The network that orders transactions, runs Novrinex Core, and commits the authoritative financial state.

Open interest: The total outstanding exposure in a market. Because every position has an opposite side, long and short quantities balance.

Oracle: A system of approved reporters and aggregation rules that supplies prices from outside the Novrinex order book.

Perpetual contract: A derivative that tracks an underlying price without an expiry date. Funding helps keep its market price near the underlying index.

Price-time priority: The order-book rule that gives better prices priority, then gives earlier orders priority at the same price.

Projection: A derived view of network state in an indexer, API, backend, or client application.

Request ID: A durable identifier bound to one financial request. An identical retry returns the stored result, while conflicting reuse fails.

Risk domain: A boundary that defines which markets, collateral, margin rules, insurance, and losses belong together.

Settlement asset: The asset used by a market for collateral, fees, funding, realized profit or loss, and liquidation accounting.

Subaccount: An owner-controlled container for collateral, orders, positions, permissions, and membership in one risk domain.

Taker: The incoming side of a fill, which traded against liquidity already resting on the order book.

Trading key: A revocable key whose permissions can be limited by action, subaccount, market, order size, expiry, and nonce.