Glossary

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A

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Authorized Participant (AP)

An institutional entity authorized to create (mint) and redeem x-basket tokens directly with the protocol. APs deposit physical commodities to mint tokens and burn tokens to withdraw physical. Retail users cannot be APs.

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Attestation

A cryptographic proof that an auditor has verified specific information, such as warehouse inventory matching the on-chain ledger.

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B

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Basis Points (bps)

One hundredth of one percent (0.01%). Used for expressing index weights with precision. 10,000 bps = 100%.

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C

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Constraint Token

A physically-backed token representing ownership claims on warehouse inventory. Called “constraint” because it represents real-world supply chain constraints. See x-basket.

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Cross-Margin

A margin mode where collateral is shared across multiple positions. Not currently available for Scape HIP-3 markets (isolated margin only).

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D

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Deployer

Under HIP-3, the entity that deploys and operates a perpetual market. Scape is the deployer for Scape index markets. Deployers are responsible for oracle configuration, market operation, and receive 50% of fees.

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F

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Funding Rate

The periodic payment between long and short perpetual positions that keeps the perpetual price anchored to the index value. Positive funding = longs pay shorts; negative funding = shorts pay longs.

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H

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HIP-3

Hyperliquid Improvement Proposal 3. The standard for builder-deployed perpetual markets on Hyperliquid. Defines deployment requirements and fee structures.

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HYPE

The native token of the Hyperliquid ecosystem. Required for deploying HIP-3 markets.

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I

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Index

A calculated value representing a basket of commodities. Scape indices track sector-focused commodity baskets. $$I(t) = \sum_{i=1}^{n} w_i \cdot P_i(t)$$

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Inventory Ledger

The on-chain record of physical commodities held in warehouses backing x-basket tokens. Includes quantities, locations, and audit attestations.

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Isolated Margin

A margin mode where each position has dedicated collateral. Used for all Scape HIP-3 markets currently.

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K

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Keeper

An automated system that performs protocol functions, such as publishing oracle updates or triggering rebalances. Scape operates keepers for index price publication.

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L

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Liquidation

The forced closure of a position when margin falls below maintenance requirements. Uses mark price, not last price.

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Liquidation Price

The price at which a position would be liquidated. Users should monitor this to avoid unexpected liquidations.

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M

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Maintenance Margin

The minimum margin required to keep a position open. Falling below this triggers liquidation.

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Mark Price

The price used for calculating unrealized PnL and triggering liquidations. Typically derived from index price and order book data.

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Mint

The creation of new tokens. For x-baskets, APs mint tokens by depositing physical commodities.

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N

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NAV (Net Asset Value)

The per-token value of x-basket tokens, calculated from inventory value divided by tokens outstanding. $$NAV(t) = \frac{\sum_{i} Q_i(t) \cdot P_i(t)}{S(t)}$$

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O

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Oracle

A system that provides external data (like commodity prices) to on-chain contracts. Scape uses Oracle Provider (TBD) for price feeds.

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Oracle Provider (TBD)

The external oracle service that supplies commodity price feeds to Scape. Provider selection is not finalized.

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P

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Perpetual Contract

A derivative contract with no expiration date. Funding rates keep the perpetual price anchored to the underlying index.

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R

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Redeem

The process of burning tokens to receive underlying assets. For x-baskets, APs burn tokens to withdraw physical commodities.

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Relayer

See Keeper.

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S

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s-basket

A synthetic sector basket. Price-referenced index with no physical backing. Examples: sSEMIS, sDEFENSE, sAERO, sENERGY.

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Settlement

The process of resolving positions into final gains/losses.

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Slippage

The difference between expected and actual execution price, typically due to order book depth or market movement.

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T

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Testnet

A test network for development and testing. All current Scape markets are on Hyperliquid testnet. Testnet assets have no real value.

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V

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Vault

A smart contract that pools user deposits and manages them according to defined rules.

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W

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Warehouse Receipt

A document issued by a warehouse certifying the deposit of specific commodities. Used as proof of physical backing for x-baskets.

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Weight

The proportional allocation of a commodity in an index basket. Expressed as a decimal (0.25 = 25%) or in basis points (2500 bps).

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X

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x-basket

A physically-backed constraint token. Backed by warehouse receipts. Examples: xSEMIS, xDEFENSE, xAERO, xENERGY. Roadmap only—does not exist today.

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Index Components Reference

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Metals & Materials

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Rare Earths & Specialty

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Energy