> ## Documentation Index > Fetch the complete documentation index at: https://docs.levery.io/llms.txt > Use this file to discover all available pages before exploring further. # Glossary > Definitions of key terms used across Levery and essential AMM/DeFi concepts. ## How to use this glossary * Terms are listed **alphabetically (A–Z)**. * When a term refers to a **Levery-specific component or data model**, it is labeled **(Levery)**. * Industry terms (AMM/DeFi/security/operations) are defined in a vendor-neutral way, with brief context on how they apply to Levery when helpful. *** ## Glossary (A–Z) ### Account (Levery) A backend record representing an entity-controlled address known to the platform. Accounts power permissions, dashboards, portfolio views, and operational reporting. ### Account Dashboard The end-user interface that aggregates balances, recent activity, positions, and portfolio valuation for a selected account. ### Add Liquidity Depositing assets into a pool to create or increase a liquidity position. The deposited assets become available for swaps and may earn LP fees. ### Address A public identifier on an EVM network that can hold assets and interact with smart contracts. Addresses are typically represented as 20-byte hex values (e.g., `0x…`). ### Allowlist A list of approved addresses/entities permitted to access a venue, pool, or feature. In Levery, allowlisting can be enforced deterministically at execution time (swaps and liquidity updates). ### AML Anti-Money Laundering controls. Typically performed off-chain (screening/monitoring), with on-chain enforcement achieved via permissions and role gating. ### AMM Automated Market Maker. A market design where prices are determined by a pool’s state and math rather than a centralized order book. ### APR Annualized Percentage Rate. In AMMs, APR is often estimated from historical fee revenue relative to TVL and is not guaranteed. ### Arithmetic safety A set of practices that prevent overflows/underflows, rounding ambiguity, and boundary errors. Deterministic arithmetic is critical for auditable and reproducible outcomes. ### Asset (Levery) Canonical asset metadata used across the platform (symbol, decimals, display metadata, optional oracle configuration, and metrics). ### Atomic settlement A property of on-chain execution: transactions either fully apply or revert with state unchanged. This reduces reconciliation risk and creates a tamper-evident execution trail. ### Attestation A verifiable statement that a policy condition held over a set of actions or a period (e.g., “only permitted entities interacted with pool X”). Attestations are derived from on-chain evidence plus governance rules. ### Audit An independent security review of a protocol’s codebase and design, typically including threat modeling, manual review, testing, and sometimes formal or property-based methods. ### Balance (Levery) A stored snapshot of an account’s token balances at a given time. Used for dashboards, portfolio totals, reporting, and historical views. ### Base fee A configured baseline LP fee for a pool. In Levery, fee configuration is designed to remain bounded and governable, and may be combined with dynamic policies when enabled. ### Block A batch of transactions finalized together on a blockchain. Blocks are identified by a monotonically increasing number (block height). ### Circuit breaker / Pause Fail-closed controls that halt swaps and/or liquidity mutations globally or per pool under abnormal conditions, incidents, or operational intervention. ### CompliantRouter (Levery) The trading entrypoint that submits swaps through Levery’s enforcement surface, carrying the context required for deterministic policy checks. ### Compliance The set of policies, procedures, and controls required to operate under applicable laws and internal governance (e.g., KYC/KYB, AML, sanctions, market conduct). ### Confirmations A practical safety margin that delays “final” indexing/reporting until a transaction’s block is sufficiently deep to reduce reorg risk. ### Concentrated liquidity An AMM design where liquidity is provided within a chosen price range. Concentrated positions can earn more fees per unit liquidity but are more sensitive to price movements. ### Counterparty risk The risk that a party in a transaction fails to perform. Atomic on-chain settlement reduces counterparty exposure in the execution path. ### Cursor (Levery) A persistent progress pointer used by Levery indexers and batch jobs (stored as backend state) to resume processing safely across restarts, reorgs, and backfills. ### Custodial A custody model where a third party controls keys and assets on behalf of clients. Institutions may still use custody layers with Levery, but settlement remains on-chain. ### DayBlock (Levery) A mapping from a day (typically UTC) to a representative block number used for daily snapshots and historical portfolio calculations. ### Decimals A token metadata field defining its base units (e.g., 6 for many stablecoins, 18 for many ERC-20s). Correct decimal handling is critical for pricing, fee calculation, and UI display. ### Decrease Liquidity Reducing an existing position’s liquidity, typically receiving back underlying assets and (depending on pool state) accrued fees. ### Deterministic execution A property where the same inputs produce the same outputs across validators, enabling reproducible audits and verifiable monitoring. ### Dynamic fee A fee mechanism that adjusts around a baseline based on configured signals and guardrails, while remaining within explicit bounds. ### EOA Externally Owned Account. A traditional EVM address controlled by a private key (as opposed to a smart contract account). ### ERC-20 The standard interface for fungible tokens on EVM networks. ### Event A log emitted by a smart contract during transaction execution. Events are commonly used by indexers to build queryable datasets. ### Exact input A swap mode where the input amount is fixed and the output is determined by pool pricing, fees, and slippage. ### Exact output A swap mode where the desired output is fixed and the input is computed (and bounded) based on pool pricing, fees, and slippage. ### Fee vault A designated recipient contract/address for protocol revenues (e.g., service fees), usually governed via administration and often paired with distribution logic. ### feeGrowthInside An accounting accumulator used to compute how much fee revenue a position has earned based on fee growth within its tick range. ### Finality A confidence threshold that a transaction will not be reversed. In practice, systems use confirmations and reorg handling to approximate finality. ### Front-running A class of MEV where an attacker places a transaction ahead of a victim’s to profit from predictable price movement. ### Gas The unit of computational cost for EVM execution. Users pay gas fees to include transactions in blocks. ### Hook A programmable execution extension that can run logic during swaps and liquidity operations. Levery uses a hook-based design to enforce policy deterministically at execution time. ### hookData (Levery) Structured data attached to swaps or liquidity calls that lets the system deterministically associate actions with identity/policy context at execution time. ### HSM Hardware Security Module. A tamper-resistant device used to generate, store, and use keys under enforced policy (common in institutional custody and treasury operations). ### Impermanent loss A potential loss relative to simply holding the underlying assets, caused by price movement and AMM rebalancing. ### Indexer A process that ingests on-chain data (events, state reads) and produces queryable datasets for dashboards, analytics, risk monitoring, and reporting. ### isCanonical A flag indicating whether a record is considered final/canonical after reorg handling. Non-canonical records should not be used for finalized reporting. ### KYB Know Your Business. Verification of an institution/organization, typically required for venue access, roles, and higher-privilege actions. ### KYC Know Your Customer. Verification of an individual, often required before granting access in regulated settings. ### KYT Know Your Transaction. Transaction monitoring and risk scoring used to detect suspicious patterns and support AML programs. ### Liquidity A measure of depth in a pool. Higher liquidity generally reduces price impact for a given trade size. ### Liquidity Provider (LP) A participant who supplies assets to a pool to facilitate swaps. LPs typically earn LP fees and assume pool-specific risks. ### Log index An event’s position within a transaction receipt. Commonly used with transaction hash to uniquely identify a specific log. ### LP fee The portion of swap fees attributed to liquidity providers, accrued to positions via pool accounting. ### maxAge (Levery) An oracle freshness bound used in pool policy. It defines the maximum allowed age of oracle data under the pool’s oracle configuration. ### MEV Maximal Extractable Value. Profit that can be extracted by ordering, including, or excluding transactions (e.g., front-running or sandwiching). ### MPC Multi-Party Computation. A custody and signing approach where key material is distributed across parties/devices so no single party holds the full private key. ### Multicall A technique that batches multiple read calls into a single RPC request. Used to reduce latency and RPC cost when retrieving token/pool state. ### Multisig A signing policy that requires multiple independent approvals to authorize an action. Common for administering configuration and treasury operations. ### Native token A network’s intrinsic currency (e.g., ETH) used for gas and value transfer. Unlike ERC-20, it is not a token contract. ### Non-custodial A custody model where users/entities retain control over assets and signing keys; the protocol does not take ownership of funds during execution. ### Oracle A data source that provides reference prices or signals. Oracles are security-relevant configuration and should be governed and monitored. ### Parse Class A structured backend collection (similar to a table) used in Parse Server data models. ### Parse Server A backend service used to store and query application data, power dashboards, and support operational reporting. ### PaymentSplitter A fee distribution contract that can receive protocol revenues and distribute them to configured recipients under a defined policy. ### Permit2 A token approval mechanism designed to simplify and standardize ERC-20 approvals and transfers across routers and applications. ### Pool A state machine that holds pricing and liquidity state for a pair of assets and supports swaps and liquidity operations. ### poolId A deterministic identifier derived from a pool’s configuration. Used as a stable key for on-chain reads and backend indexing. ### PoolKey A canonical description of a pool’s defining configuration (assets, tick spacing, fee configuration, hook address). Identifiers such as poolId are derived from this configuration. ### PoolManager The AMM settlement and accounting engine that executes swaps and liquidity updates atomically and maintains pool state. ### Portfolio An aggregated view of an account’s balances and positions valued in a quote currency, commonly used for dashboards and reporting. ### PortfolioRefreshRequest (Levery) A backend task object used to rebuild portfolio state (e.g., current snapshots) and track the status of the refresh pipeline. ### Position A representation of liquidity owned by an LP in a specific pool. Positions earn fees according to pool accounting and can be partially increased/decreased. ### Position manager A component responsible for creating and updating liquidity positions (mint/increase/decrease/collect/burn), typically mediating access and enforcing required semantics. ### Price A valuation reference for an asset in a quote currency. Platforms commonly store price observations to value balances, TVL, and historical metrics. ### Price impact The change in execution price caused by a trade, primarily driven by trade size relative to pool liquidity. ### Quote An estimate of swap output (or required input) at a given moment. Quotes are not guarantees and can become stale quickly during volatility. ### Reorg A chain reorganization that replaces previously observed blocks. Indexers must detect reorgs and mark affected records as non-canonical or roll them back. ### Role (Levery) A named entitlement required by a pool or venue (e.g., “Market Maker”, “Qualified Counterparty”). Roles enable tiered access beyond basic permissioning. ### RPC Remote Procedure Call. The interface used by clients and indexers to read chain state and submit transactions via a node provider. ### Runtime Verification The security firm that audited Levery’s smart-contract suite. See the audit report linked from the Security page for full scope and methodology. ### Service fee (Levery) A protocol-level fee charged by Levery and routed to a designated fee vault/distribution contract. This is distinct from LP fees. ### SIWE Sign-In With Ethereum. An authentication pattern where a user signs a structured message to prove address control for a login session. ### Slippage The difference between an expected price and the executed price. Slippage increases with volatility and with trade size relative to liquidity. ### Slippage tolerance A user-defined bound that specifies the minimum acceptable output (exact-input) or the maximum acceptable input (exact-output) before a swap reverts. ### Soulbound position A non-transferable token representation of ownership. In Levery, liquidity positions can be soulbound to prevent unauthorized transfer of LP ownership. ### SoulboundPositionManager (Levery) The component that mints and manages soulbound liquidity position tokens and mediates position modifications through authorized flows. ### sqrtPriceX96 A fixed-point representation of \\(\sqrt{P}\\) scaled by \\(2^{96}\\), commonly used to store price in concentrated liquidity AMMs. ### StateView (Levery) A read-optimized contract used to retrieve pool and position state efficiently for frontends and indexers. ### Swap An on-chain exchange of one asset for another, executed atomically against a pool’s pricing and liquidity state. ### Tamper-evident audit trail A property of the ledger: once a state transition is recorded, it provides durable evidence for monitoring, attestations, and post-incident reconstruction. ### tick A discrete price step used in concentrated liquidity pools. Price moves across ticks as swaps occur. ### tickSpacing The granularity of allowed ticks. Higher tick spacing reduces resolution and can simplify pool state. ### Token A fungible unit of value represented on-chain (commonly via ERC-20). Token metadata such as symbol and decimals is used for display and accounting. ### Transaction finality A practical threshold at which a transaction is considered stable enough for reporting and downstream systems (commonly implemented via confirmations and reorg handling). ### TVL Total Value Locked. The total value of assets deposited into a pool or protocol, typically computed using reference prices. ### uid A deterministic unique identifier for an indexed record (commonly constructed from chain + transaction hash + log index) used for idempotent storage. ### Volume Total value exchanged through swaps over a period (e.g., 24 hours). Volume is commonly used for metrics, fee estimation, and market monitoring. ### WebAuthn / Passkey A standards-based method for strong authentication using device-bound credentials (often biometrics). Used to improve security and reduce phishing risk. ### Whitelist A common synonym for allowlist.