| LS-LMSR | Liquidity-Sensitive Logarithmic Market Scoring Rule. The AMM engine used by FatTail. Liquidity parameter b scales with total volume. |
| Alpha (α) | Liquidity sensitivity parameter set at market creation. Controls how quickly liquidity scales with volume. |
| K-Point (KP) | Non-monetary platform points used for all economic activities. No cash value. |
| Vigorish (Vig) | Dynamic transaction fee applied to each trade. Split 50/50 between platform and yield seekers. |
| Yield Seeker | User who holds positions on the dominant (90%) side to earn vig distributions. Analogous to a bond investor seeking carry. |
| Speculator | User who bets on the tail (10%) side, seeking 10x+ returns on low-probability events. |
| Safety Guard | Informational warning displayed when prices drift into the 11%–89% range. Trades are never blocked. |
| Split | Convert N KP into N YES shares + N NO shares without affecting market price. |
| Merge | Convert N YES shares + N NO shares back into N KP without affecting market price. |
| Bond | Collateral deposited when proposing or challenging an outcome in community settlement. Winner receives loser’s bond. |
| Proposal | An outcome submission (YES or NO) in community settlement, accompanied by a bond deposit. |
| Challenge | A dispute filed against a proposal in community settlement, requiring a matching bond. |
| Challenge Period | Time window after a proposal during which challenges can be filed. Default: 24 hours. |
| Voting Period | Time window for community voting after a challenge is filed. Default: 48 hours. |
| Auto-compound | Option to automatically reinvest vig earnings into the user’s position. |
| APR | Annual Percentage Rate — estimated yearly return based on recent vig distributions. |
| L_max | Worst-case market maker loss, calculated as b × log(n) where n = number of outcomes. |
| Kelly Criterion | Position sizing formula: f* = (bp - q) / b. Used to recommend bet sizes that maximize long-term growth while avoiding ruin. |
| Finality | The irreversible state after settlement — outcome confirmed and positions paid out. |
| CoinGecko | Third-party API used as the price data source for Price Feed settlement. |
| Void / Cancel | Market termination with refund of investment costs. Triggered by definition failures, data issues, or other extraordinary circumstances. |