GLOSSARY

Last-resort risk control. When a position is liquidated and the insurance reserve cannot cover the loss, the matching engine partially closes profitable positions on the other side at the mark, so bad debt does not propagate. ADL is rare and only triggered after staged liquidation and the insurance reserve fail. See Liquidations and protections.

The pre-match gate every order passes through: signature validity, agent authorization, monotonic sequence, time-window checks, IOC-only policy. Orders that fail admission never see the matching engine. See Admission, signatures, and order commitments.

The on-chain account of every challenge-related event keyed to a wallet — pack purchases, pass/fail flags, referral cash, leaderboard rank. At season close, the record is the snapshot used to compute each wallet's DXTR allocation. The record is not a balance; it is a verifiable history.

The L2 blockchain Dexter settles on. All payouts (trader profit-share, leaderboard cash, referral cash) are USDC transactions on Base, anchored to a wallet address. Every transfer is visible on Basescan.

A unit equal to 0.01%. Used in fee schedules and slippage stats. A 60 bps taker fee is 0.060% on notional.

The 30-day window in which a paid trader must reach +10% return while staying inside -4% daily and -8% total drawdown. Passing unlocks a real funded account paying 90 / 10 in the trader's favor. See Entry and access.

A market posture where existing positions can be reduced but new exposure cannot be opened. The engine uses it to wind risk down without halting trading. See Order flow and market states.

Production policy that requires every order to be hashed and registered in the on-chain OrderCommitRegistry before the matching engine touches it. Provides public time-stamped evidence that an order existed before it was filled. See Admission, signatures, and order commitments.

A market posture where the price layer no longer meets the normal multi-source quorum but liveness is preserved on a reduced source family. Fresh risk is restricted; reduction stays open. See Sessions and degraded states.

The first on-chain prop trading firm: a self-custodial perpetual DEX on Base with a challenge layer on top. Pay $49–$299 for a pack, prove a +10% return inside 30 days under drawdown rules, trade a $5K–$50K funded account, keep 90% of realized profits.

The percentage decline of an account's equity from its high-water mark. Dexter's challenge has two floors: -4% close-to-close daily and -8% total from the high-water mark. Either breach ends the attempt. See Entry and access.

Dexter's protocol token. Fixed 1B supply. Used for governance voting, fee tier discounts, and as the unit of the season-end airdrop record. Not required to trade or earn — packs, profit-share, leaderboard, and referrals all pay USDC. See DXTR token and participation.

The 30-calendar-day clock that starts when a paid pack is activated. The trader has this window to reach +10% target without breaching daily or total drawdown. Expires automatically.

The real $5K, $10K, $25K, or $50K trading account a trader unlocks after passing the challenge. Realized PnL splits 90 / 10 to the trader. Funded losses are the firm's; the trader's downside is capped at the original pack price.

An 8-hour periodic payment exchanged between long and short holders to keep the perpetual price tracking the underlying index. Longs pay shorts when longs are crowded; vice versa. Dexter retains a 1% admin fee on settled funding above $1,000. See Funding, fees, and risk carry.

The public boundary that every client touches before reaching the matching engine: API endpoints, agent authorization, signed-order admission, read model. Same surface for retail wallets, institutional API clients, and copy-trading bots. See Gateway and read model.

DXTR-staked voting on fee schedule, leaderboard prize pool sizing, market listings, and treasury actions. Challenge rules (+10% / -4% / -8%) are intentionally not governable in v1 — they are fixed in the contract.

The strictest market posture: no new orders, no reductions, position is frozen, equity is not marked, evaluation clock pauses. Used only when the oracle layer or matching engine cannot operate safely.

The all-time highest equity an account has reached during its evaluation window. The -8% total drawdown floor is measured from this point, not from the starting balance. A profitable trader who pulls back from a new high triggers the floor faster than one who never made it past starting capital.

Production-required order type. Either fills against existing book depth in the same instant, or the unfilled remainder cancels. No resting orders, no GTC.

Protocol-owned reserve that absorbs liquidation shortfalls before they become bad debt for users. Funded by 50% of the residual collateral on each forced liquidation. Held in a separate contract address; never mixed with user collateral or operating treasury.

Sumsub-class identity verification (government ID + selfie + sanctions screen). Dexter requires it only at the first real-money payout, not at sign-up or pack purchase. Sanctions blocks: OFAC, EU, UK, plus countries IR, KP, SY, CU.

Per-season ranking of funded traders by realized PnL and risk-adjusted score. Top brackets (#1, #2-3, #4-10, #11-50, top 100) earn USDC payouts on Base at season close. Podium finishes are reviewed by ops before the batch leaves treasury. See Scoring and airdrop.

Forced closure of a position when account maintenance margin falls below threshold. Staged: the engine attempts partial reductions first; ADL is the last resort. Residual collateral splits 50% to the keeper bounty, 50% to the insurance reserve.

The minimum margin a position must hold to stay open. Falling below it triggers the liquidation candidate scan. Always lower than initial margin; trader must keep buffer to avoid being flagged on minor adverse moves.

Fee classification by order behavior. Makers add liquidity (post resting orders that wait to be filled — Dexter has limited resting flow under IOC policy); takers consume it. Dexter's schedule: 0.020% maker rebate-eligible / 0.060% taker on notional.

The executable price the engine uses to mark account equity, trigger liquidations, and check drawdown rules. Derived from oracle reference + venue skew + spread + depth + max-move continuity. Not the same as the index price. See Mark construction and executable price.

The single-writer runtime that fills orders. Same engine for funded accounts, demo accounts, and public users — no privileged prop lane. See Market engine.

Multi-signature wallet. Dexter operating wallet uses 2-of-3 multi-sig for movements above $10K; governance and insurance actions require 3-of-5 with at least one external signer. Every signed transaction is posted to Base.

External price feed Dexter uses to mark perp markets. Production uses Hermes / Pyth as primary and a redundant HTTP oracle mux for cross-check. Sources are cross-checked for freshness, deviation, and depth before any tick promotes to executable mark. See Price layer.

On-chain contract on Base where every paid-account order hash is committed before the matching engine processes it. Provides public, time-stamped proof of order arrival — the basis for after-the-fact fraud review.

A one-time challenge purchase. Four sizes: $49 Starter ($5K allocation), $99 Growth ($10K), $199 Swing ($25K), $299 Elite ($50K). Paid in USDC, BTC, or ETH on Base. Funded account unlocks on pass; pack price is the trader's only downside.

A derivative contract with no expiration. Holders pay funding to keep the contract price tracking the index. Dexter currently lists BTC, ETH, SOL perps; equity, metal, and energy perps are on the roadmap.

Human operations check on the top 3 leaderboard finishers each season before the prize batch leaves treasury. Looks for wash trading, sybil patterns, and oracle exploits. Also applied to single withdrawals above $5,000.

The realized PnL split on funded accounts: 90% to the trader, 10% to Dexter. Identical for every funded wallet, contract-bounded, no escalating tiers or time decay.

A market posture between live and close-only. Fresh risk is allowed but with tighter caps and higher skew-adjusted fees. The engine uses it to bleed off pressure before forcing close-only.

Cash an upstream wallet earns when a referee buys a paid pack: 8% base + up to 4% activity bonus, capped per pack tier ($5.88 / $11.88 / $23.88 / $35.88). Demo seats and self-referrals do not pay. See Referrals.

A separate contract address holding the leaderboard prize pool for the current season. Funded at season open so the published payout brackets cannot be quietly reduced mid-season. Drawn down at season close.

A bounded competition period in which leaderboard rank, referral activity, and the airdrop record accumulate. At season close the reward pool pays out and the airdrop record is snapshotted.

A market posture used by session-based assets (equity, metal, energy perps) when the underlying market is on schedule break. Positions are held but not marked against stale ticks; drawdown rules are checked at next session open. Distinct from degraded — the data is fine, the underlying is just off-hours.

The on-chain release of collateral or payout against a published state root. Each request is anchored to an account nonce, included in the next state root, gated by a proof window, then finalized by the vault contract. See State roots, withdrawals, and settlement flow.

Directional imbalance of open interest on a market — how lopsided long vs. short positioning is. The engine raises taker fees and tightens margin on crowded directions to keep risk balanced.

A cryptographic commitment (Merkle root) summarizing the entire account ledger at a point in time. Published periodically to Base. Payouts can only be finalized against a published root with a matching account proof.

Third-party identity-verification provider. Dexter's KYC runs through Sumsub-class flows: government ID, selfie liveness, sanctions screen. Dexter stores only pass/fail status, the provider ID, and a risk tag — not the underlying documents.

Protocol-owned operating wallet holding fee revenue and the funding admin slice. Pays operating costs and refills the reward pool at season open. Multi-sig 2-of-3 above $10K. Distinct from user collateral and insurance reserve.

The stablecoin Dexter prices, collateralizes, and pays out in. All challenge fees, profit-share payouts, leaderboard cash, and referral cash settle in USDC on Base.

Liquidity model Dexter runs in production. Execution prices flow through skew-sensitive logic, spread controls, inventory caps, and open-interest pressure rather than depending on passive maker quotes in a book.

Contract address holding user collateral. Releases only against a published state root and a matching proof. Cannot be drained to cover protocol operations, treasury actions, or another user's payout. See Vault and treasury.

The leaderboard counter on dexter.market that sums every payout transaction posted on Base. Updated hourly from on-chain transfers, not from a database row — anyone can reconcile the number against Basescan themselves.

The Web3 account address that anchors every Dexter relationship: pack purchase, trade history, leaderboard rank, referral cash, payouts. MetaMask, WalletConnect, Coinbase Wallet, and Reown are supported. No email or password — a signature is the only login.

The Merkle proof a wallet presents to the vault contract to release collateral against a published state root. Without a valid proof the vault rejects the request — no operator key can override. See Withdrawal proofs, disputes, and root challenges.