AMM: liquidity reserve smart contracts on Ethereum.

Peer-to-Pool: in a peer-to-pool liquidity model, liquidity providers act as counterparty to traders to cover unmatched positions between longs and shorts.

Trade: the most common way for traders to interact with Qilin Protocol. Traders select the ERC-20 tokens they have as margin, adjust the leverage and open and close their positions.

When a position is closed, the user's profit or loss is calculated by subtracting the trading fee and the funding payment.

Asset: while digital assets can take many forms, Qilin Protocol supports ERC-20 token pairs that are available through Uniswap V3, V2 and Sushiswap oracles.

Core Contract: the most critical component of Qilin Protocol. Each Qilin version has its own core contracts deployed on Ethereum separately and supports the most fundamental functionalities of a decentralized protocol

ERC20: a fungible token on Ethereum.

Factory: the smart contract that deploys the trading pair contract any ERC20/ERC20 pairs.

Liquidity Provider: person who deposits the ERC20 tokens into the designated liquidity pool and gets compensated through trading and funding fees.

Liquidity: assets stored in a Qilin pool contract that get settled as the LP closes its liquidity position.

Liqudity Provider Safety Threshold: a risk index of a liquidity pool that determines when debt is triggered.

Slippage: the price adjustment that gets applied between trade submission and execution. It is calculated based on the value of the unmatched position and the value of the asset in a pool. The slippage is applied on the TWAP price, thus achieving a shift in the price of the trade and reducing the risk exposure of the LP.

Trading Pair: the smart contract deployed by the Qilin V2 Factory Contract for a market between two ERC20 tokens. The pairing contract creates a pool for the market in V2.

Peripheral Contracts: composable smart contracts that can add useful functionalities to the Core Contract without affecting fundamental functionalities such as liquidity and perpetual contract deployment.

Pool: a contract deployed by V2 Factory to pair two ERC-20 assets. One token pair can only correspond to one pool.

Protocol Fee: fees that are awarded to the Protocol itself rather than to the liquidity provider.

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