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Liquidity


  1. LPs (Liquidity Providers): Individuals or entities that contribute assets to a liquidity pool, facilitating trading and earning fees.

  2. LP Token: A token representing the share or proof of ownership of a liquidity provider in a specific pool.

  3. Maximum Drawdown or Max Drawdown (MDD): The maximum decline in value from a peak to a trough of an investment before a new peak is achieved. It measures the largest percentage drop during a specific period.

  4. Uptime: The percentage of time a system, service, or platform remains operational or available.

  5. Open/Close: Refers to the status of a liquidity pool, indicating whether it's open to accepting new funds or closed to further capital injection from users.

  6. Manage Fee: The fee charged by a liquidity pool from user contributions for managing the pool's operations.

  7. Profit Sharing: The proportion of profits distributed to the liquidity pool's managers as a reward for their services.

  8. Fee Tier: The specific fee level chosen by a liquidity pool, often based on the contribution amount or other criteria.

  9. Price Spread: The difference between the highest bid price and the lowest ask price in a market. In the context of Jungle (and similar platforms), it refers to the difference between the prices provided by liquidity providers when offering long and short positions and the prices given by the oracle.

  10. Equity: The net value of a liquidity pool, calculated as assets minus liabilities.

  11. Cross: A trading mode where the entire margin balance can be used as collateral for multiple positions.

  12. Isolated: A trading mode where margin is restricted to individual positions, allowing separate risk management for each position.