Markets and prices
| Term | Meaning |
|---|---|
| Currency pair | A relationship expressing one currency in terms of another, such as EUR/USD |
| Quote currency | The currency used to express a token’s price, such as EURC in TOKEN/EURC |
| Currency token | A specific onchain asset representing a currency; its contract identity matters |
| FX triangle | Two pools for the same launched token connected by an underlying currency pool |
| Canonical pool | A token market identified by the FX factory for that launch |
| Spot price | The pool’s price at a particular state, before pricing a specific order size |
| Implied cross price | A price calculated by multiplying exchange rates along a route |
| Arbitrage | Trading across differing market prices; fees, price impact, and execution affect the result |
| Liquidity | Assets positioned in a market to support exchange |
| Active liquidity | Liquidity contributing at the current price within its configured ranges |
| FDV | Fully diluted valuation: a selected token price multiplied by total supply |
Trading
| Term | Meaning |
|---|---|
| Route | The ordered sequence of pools used to exchange the input asset for the output |
| Hop or leg | One pool exchange within a route |
| Exact input | An order that fixes the amount spent and protects a minimum received |
| Exact output | An order that fixes the amount received and caps the amount spent |
| Price impact | The change in execution price caused by the trade itself |
| Slippage tolerance | The allowed change between the quoted result and settlement |
| Deadline | The latest chain timestamp at which the order may execute |
| Allowance | An ERC-20 spending permission granted to a contract |
| Gas | The network cost of executing a transaction; Arc uses USDC for gas |
| Receipt | The onchain result of a submitted transaction, including whether it succeeded |
Fees and allocations
| Term | Meaning |
|---|---|
| Basis point, or bp | One hundredth of a percentage point: 1 bp = 0.01%; 100 bp = 1% |
| Native LP fee | The pool fee earned by liquidity providers |
| Hook fee | A deduction implemented by FX’s hook for a registered token market |
| Opening surcharge | A temporary buy deduction following launch activation |
| Builder allocation | Token supply reserved under the launch’s vesting schedule |
| Cliff | The initial period during which no vested allocation can be released |
| Holder reward | A backed fee entitlement in an eligible single-currency launch |
| Eligible realized revenue | Protocol receipts actually recognized in USDC for the revenue split |
| Buyback reserve | USDC reserved for eligible purchases of the registered official FX token |
| Dead-address delivery | Transfer of acquired FX to the configured dead address; ERC-20 totalSupply stays unchanged |
Building with FX
| Term | Meaning |
|---|---|
| PoolManager | The Uniswap v4 contract that holds pool state and executes pool operations |
| PoolKey | The currencies, fee, tick spacing, and hook identifying a v4 pool |
| Raw units | Integer asset amounts before applying the token’s decimal precision |
| Snapshot | A market-data view tied to a particular block number and block hash |
| Reorg | A change to the canonical chain history that can invalidate an earlier snapshot |
| Deployment identity | The verified network, contracts, component bindings, and release configuration |
| Settlement | The actual movement of assets that resolves a route’s balances |