Glossary

Backing — the quote-side balance sitting in a coin's own pool. Before the bond it is USDT0; after, the coin's tracker. It is the money the coin's trading has actually put behind it, not a valuation.

Bond — the one-time migration that re-pairs a coin from USDT0 to its leveraged tracker, at the same dollar price, once the pool has accumulated the launcher's threshold. Permissionless.

bondBackingUsd — the bond threshold, in USDT0, immutable and public on the launcher. 15,000 USDT0 by default.

CREATE2 mining — searching for a deployment salt that produces a coin address sorting below its quote, so the coin is always token0 and is priced the right way up by every tracker.

Creator fee — 0.7% of every swap, booked to whoever launched the coin, claimable at any time, forever.

Cross margin — one USDT0 balance backing every position in an account. A tracker's account holds a single position, so its leverage is simply notional divided by equity.

Deposit cap — the most a tracker's vault can move to the venue: its idle USDT0 above its redeem-buffer floor (fundableUsdt0()), enforced on chain by depositToHedge. It is the buffer policy itself.

Direction — long or short. A long tracker rises with its market; a short tracker rises when its market falls. Marked by an S suffix on the tracker symbol.

Entry — on the hedge book, the mark at which a tracker's position was opened. Added backing averages into it at the mark it arrived at.

Funding — the periodic payment between longs and shorts that keeps a perpetual near its index. On Nado it settles every hour and is capped at ±2% a day.

Holdable cap — the most leverage a position can hold on a market: 90% of the venue's cap, rounded down (18× on a 20× market, 9× on 10×, 2× on 3×). The factory lists it on chain.

Leverage (the multiple) — how many times harder than its market a tracker moves. Chosen by the creator at launch, from 1× up to LTFactory.maxLeverageFor(symbol): the lower of the product ceiling (MAX_LEVERAGE = 5) and the holdable cap for the market.

Leveraged tracker (LT) — an ERC-20 following a real market at a fixed multiple, e.g. NVDAx5. Backed by a perpetual position on Nado held in the tracker vault's own account, valued at NAV, mintable and redeemable at NAV.

Linked signer — the keeper's key, chosen by a tracker vault's owner and linked by the vault to its Nado account. The venue lets it place and cancel orders and withdraw back to the vault, and nothing that moves collateral anywhere else; the vault owner can revoke it at any time.

Liquidation threshold — the point at which the venue closes a position for the account. On Nado, the account's maintenance health falling below zero: at 5× on a 20× market such as Nvidia, about 17.9% against a long or 17.1% against a short, from entry.

Locked by absence — liquidity that cannot be withdrawn because the holding contract has no function that could, rather than because a timelock currently refuses.

Maintenance health — Nado's measure of how far an account is from liquidation: its USDT0 plus its positions valued at the market's maintenance weight. Below zero, the account can be liquidated.

MIGRATION_DUST — 1e12, the tolerance for coin left behind by a bond. Anything larger reverts the whole migration.

NAV — a tracker's net asset value: its backing — the equity of its Nado account plus the USDT0 in its vault — divided by its supply. Posted on chain, readable by anyone.

Nado — the order-book perpetuals exchange on Ink where every tracker's position is held. It lists stock, index and commodity perpetuals that trade around the clock, and settles in USDT0.

Notional — a position's exposure: size times mark. Five times the margin behind it, at 5×.

Seed buy — the creator's opening purchase of their own coin, made inside the launch transaction. At least minSeedUsdt0 (1 USDT0), paid in USDT0 or bought with ETH via launchWithEth. The only buy the token allows in the launch block.

Single-sided position — a Uniswap V3 position holding only one of the two tokens, valid because the pool is initialised exactly at the range's bound. It is why launching needs no capital.

sqrtPriceX96 — Uniswap V3's price representation, the square root of the price in smallest units, scaled by 2^96. Never square one: (2^160)^2 overflows a uint256.

Subaccount — a Nado account: an owner address plus a 12-byte name. Each tracker's vault trades from its own subaccount named default, so the account id is the vault's address followed by default.

Tracker pool — a tracker's own USDT0 market, with most of its depth in a tight band around NAV and a full-range floor underneath.

USDT0 — the quote asset: USD₮0, Tether's omnichain dollar, at 0x0200C29006150606B650577BBE7B6248F58470c1 on Ink. It is the venue's settlement asset and Ink's main trading pair. 6 decimals, which is why every price conversion here carries a 10^(18 − dq) term.

Volatility decay — the ground a constant-leverage product loses on a round trip in the underlying. Structural, not a defect.