| Term | Definition | | --- | --- | | Stock token | The ERC-20 collateral asset a series is built on (mock versions on testnet, e.g. mNVDA). | | Series | The full state for one (market, epoch, cap) triple: vault, two position tokens and one auction. | | Epoch | A monthly cycle settling on the third Friday; numbered from 000. | | Cap | The percentage above open at which Upside gains begin: 0%, 2%, 5% or 10%. | | P0 | Opening price — a 30-minute TWAP at the open window; the prior epoch's S by continuity. | | K | Cap price, K = P0 × (1 + cap). The protocol's central variable. | | S | Settlement price — a 30-minute TWAP in the settlement window. | | Income | The leg that keeps min(S, K) per unit plus premium earned. | | Upside | The leg that pays max(S − K, 0) per unit. | | Split | Deposit n stock tokens, mint n Income + n Upside. | | Subscribe | Split with the Upside consigned to the auction. | | Unsubscribe | Redeem a consigned lot before the auction starts. | | Merge / Recompose | Burn n Income + n Upside for n stock tokens — always available, always free. | | Premium | The mUSDG the auction raises, shared by subscribers net of the 5% fee. | | Descending clock | The 240-step × 30 s falling-price sale mechanism. | | Clearing price | The single price at which all auction fills execute. | | Reserve step | A subscriber's minimum acceptable step (≤ 239); stricter lots don't sell. | | TWAP | Time-weighted average price, used for P0 and S. | | Gross band | Settlement sanity range [P0/4, 4·P0]. | | Pool band | 3% maximum disagreement between oracle and pool prices. | | Collateral ratio (p) | Vault balance ÷ issued units at snapshot; 1.0 when whole. | | Shortfall | The recorded underpayment when the vault cannot cover obligations. | | Terminate | The 30-day-deadline fallback that settles at an anchored price (or S = P0). | | Guardian | An emergency role that can pause only splits and subscriptions. | | Keeper | Any unpermissioned actor advancing open / settle / finalize / reschedule. | | mUSDG | The testnet quote stablecoin (6 decimals). |