Glossary

Plain-language definitions of every term used across Ozmium - onchain basics, leverage, lending, liquidity provision, and the x402 machine payment protocol.

Short, practical definitions. Where a term has a precise meaning inside Ozmium, that is the meaning given here.

Onchain Basics

Base - An Ethereum layer-2 network, chain id 8453. The only network Ozmium operates on.

ERC-20 - The token standard. OZ, USDC, and every other token in the app is an ERC-20.

Approval - Permission you grant a contract to spend a specific ERC-20 from your wallet. Required once per token per spender. An unlimited approval is a standing permission until revoked.

Calldata - The encoded instruction inside a transaction: { to, data, value }. Ozmium builds calldata; your wallet signs and broadcasts it.

Gas - The fee paid in ETH to include a transaction. On Base this is small but never zero unless someone else is sponsoring it.

Non-custodial - The operator cannot hold, move, or freeze your assets. Ozmium is non-custodial.

Basescan - The Base block explorer. The final authority on what a transaction actually did.

Trading

Spot swap - Exchanging one token for another at the current price. No leverage, no liquidation.

Slippage - The difference between the quoted price and the filled price. Guarded by a maximum you set; if the market moves past it, the transaction reverts instead of filling badly.

Perpetual (perp) - A leveraged long or short position with no expiry date. Ozmium routes perpetuals to Gains Network gTrade, using USDC as collateral.

Margin / collateral - The USDC you post to open a leveraged position. Position size equals margin times leverage.

Leverage - The multiplier on your margin. 10x on $100 of margin controls $1,000 of exposure, and a 10 percent adverse move wipes the margin.

Liquidation - The forced close of a position when its margin can no longer cover losses. Enforced onchain by the protocol, not by Ozmium.

Liquidation price - The market price at which liquidation occurs. Shown before you sign.

Mark price vs index price - mark is what a position fills at on Gains. index is the oracle spot price liquidations are measured against. The gap between them is real and tradeable.

Funding / rollover fee - The ongoing cost of holding a leveraged position. It accrues against your margin over time.

Take profit (TP) / stop loss (SL) - Resting instructions to close a position at a target or a maximum loss. Ozmium can modify these on an open position without closing it.

Pending order - A resting limit or stop order that has not filled. It holds collateral but is not yet a position. Conflating the two is a common integration bug.

Lending and Borrowing

Vault - A pooled lending market you supply assets to in exchange for yield. Ozmium lists Morpho ERC-4626 vaults and Aave v3 markets.

APY / APR - Annualised yield or rate. Both float with market conditions; a displayed rate is an estimate at the moment you read it.

LLTV - Liquidation loan-to-value. The maximum ratio of debt to collateral before the position can be liquidated.

Health factor - How far a borrow position is from liquidation. Above 1 is solvent; at or below 1 it can be liquidated.

Floating rate - A borrow rate that moves with utilization of the market.

Fixed rate / fixed term - A borrow rate locked at execution to a stated maturity. Ozmium surfaces these through Morpho Midnight books.

Bad debt - Debt left in a market after collateral proved insufficient to cover it. A real risk in any lending protocol.

Liquidity

LP (liquidity provider) - Someone who deposits both sides of a trading pair into a pool and collects a share of swap fees.

vAMM - The Aerodrome volatile-pair pool style used for OZ/USDC.

Concentrated liquidity - Uniswap v3's model, where liquidity is placed within a chosen price range. Ozmium's Uniswap v3 OZ/WETH position is placed at full range by default.

Full range - Liquidity spanning all prices. It earns less per dollar than a tight range but never goes out of range, which is the only safe default for a position nobody is watching.

Impermanent loss - The value difference between LPing a pair and simply holding both tokens. It is real, and it grows with divergence between the two sides.

Fee claim - Collecting accrued swap fees. On Uniswap v3 removal with liquidity: 0 claims fees without closing the position.

OZ and the Desk

OZ - The Ozmium token on Base, 0x148313dcdb7a7111ebefa4871f6a7fef34833b07, 18 decimals, 100 billion maximum supply, burn-preferred.

onz - The unit name for OZ. One hundred Ozmium is written 100oz.

Burn - Sending OZ to the dead address, permanently removing it from supply. Burns are ranked publicly onchain.

Burn ladder - The public onchain ranking of wallets by OZ burned.

Prop desk - A gated action surface for qualified OZ holders. Access is proven by a real onchain OZ transfer or burn, not by a claim in a request body.

Agent API

x402 - An HTTP payment protocol. A server answers an unpaid request with HTTP 402 and a payment challenge; the client signs a payment and retries. Ozmium uses x402 v2, exact scheme, on Base.

EIP-3009 - transferWithAuthorization, the USDC signature standard x402 uses. It lets a client authorize an exact transfer without a prior approval transaction.

Payment is authentication - There is no signup, no API key, and no key rotation. A valid payment is the credential.

MCP - Model Context Protocol. Ozmium publishes an MCP-shaped tool manifest so agent frameworks can discover its endpoints as tools.

llms.txt - A plain-Markdown index of a site written for language models rather than crawlers. Ozmium publishes one for the app and one for these docs.