Resources
Glossary
A quick reference for the terms used across these docs. Each one is explained in full on the page it belongs to.
Terms
- Auction discount. The per-ticker amount by which the recollateralization auction opens below the option’s re-priced fair value, so it fills quickly.
- Black-Scholes floor. An option’s Black-Scholes value at the smile’s implied vol; the minimum bond a writer must post.
- Buy-to-close. The auction fill in which a filler tenders the matching long, extinguishing the unbacked pair.
- Claim. An exerciser’s owed / funded / paid ledger from an in-the-money exercise, settled in parts as the assigned covers are realized.
- Clearing. The single core contract that mints options, holds the bonds, and runs exercise and the resolution auction.
- CoreWriter and precompiles. Hyperliquid’s write path (CoreWriter, asynchronous) and read path (precompiles, synchronous) between the EVM and HyperCore.
- Cover. The writer’s perp position on Hyperliquid that backs their short.
- Finder fee. A reward reserved on top of the bond at mint and paid to whoever opens a resolution.
- Fire-then-verify. Sending a CoreWriter action, then reading the result back rather than assuming it filled.
- Force-close. HyperCore’s liquidation of a writer’s cover, which leaves the short unbacked and opens resolution.
- HyperCore and HyperEVM. Hyperliquid’s native layer (perps, oracle, liquidation) and its EVM, where the clearing core runs.
- Insurance pool. The separate, swappable backstop of last resort behind the auction and unfunded claims.
- Intrinsic. An option’s in-the-money value, the distance between the oracle price and the strike.
- Lock-at-exercise. Fixing the amount an exercise owes at the oracle price at the moment of exercise.
- Long leg. The freely transferable ERC-1155 asset the writer sells; the right to the intrinsic.
- minRope. The per-ticker minimum rope a mint must clear; how the admin caps a ticker’s leverage.
- Novation. The auction fill in which a new writer takes over the short with fresh cover, rather than closing it.
- Option bond. The refundable collateral a writer locks at mint, priced at the floor; refunded on a clean exit, consumed only on a force-close.
- Outstanding short. The total short size a writer holds on an asset; the floor their cover must stay above.
- Recollateralization auction. The permissionless, ascending auction that makes a force-closed short whole, by buy-to-close or novation.
- Rope. How far the price can move against a cover before HyperCore liquidates it.
- Self-liquidating cover. A hedge chosen so it can only be liquidated on the move that puts the option out of the money.
- Short leg. The writer’s obligation, bound to their cover and non-transferable.
- SVI smile. The stochastic-volatility curve that prices the floor across strikes, set per ticker.
- Ticker. An asset, strike, and expiry listed in the core as a pair of token ids, not a separate deployment.
- Trader.sol. The per-writer HyperCore account that holds the cover and acts on the core on the writer’s behalf.