An algorithm that derives cryptographic key material from input secrets and contextual data.
Your wallet processes the password and salt through a password-based KDF before using the resulting key to encrypt its local file.
A blockchain's base network, responsible for its own consensus and canonical state.
"Our transactions run on the rollup. Ethereum is the layer 1 where its batch commitments settle."
A system that processes activity outside a base blockchain while relying on it for key security or settlement functions.
You submit a transaction on the rollup; its batch later posts a commitment to the Ethereum base chain.
Exposure to a position larger than the capital directly supporting it.
"My position has five times my collateral's exposure. A small price move matters more to that collateral than I first pictured."
A client that checks selected blockchain information using compact proofs and protocol-specific assumptions.
A lightweight wallet checks a Merkle proof that its payment appears in a block, without downloading every transaction in the chain.
A Bitcoin payment network that uses channels so every payment does not need its own onchain record.
An order that buys only at or below a chosen price, or sells only at or above it.
"My buy limit is 100. It can fill lower, but it can't pay 101 under those limit rules."
A transferable token representing a claim connected to assets in a liquid staking protocol.
The forced repayment or closing of a position that no longer meets its collateral or margin rules.
After a loan becomes eligible for liquidation, another participant repays part of its debt and receives some of the posted collateral.
The collateral parameter used to determine when a borrowing position becomes eligible for liquidation.
An asset’s borrowing limit and liquidation threshold are different percentages, so reaching the borrowing limit doesn’t automatically mean immediate liquidation.