> For the complete documentation index, see [llms.txt](https://docs.stryke.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.stryke.xyz/references/glossary.md). # Glossary Concise definitions of terms used across the Stryke documentation. For anything not covered here, reach out through our official channels. ## A * **AMM (Automated Market Maker):** A protocol that prices and executes trades against a pool of liquidity rather than an order book. ## B * **Black-Scholes Model:** A standard mathematical model for pricing options, used by CLAMM to price each option. ## C * **Call Option:** A contract giving the buyer the right, but not the obligation, to buy an underlying asset at a set strike price before expiry. The buyer pays a premium and profits if the price rises far enough above the strike to cover it. * **CLAMM (Concentrated Liquidity AMM):** Stryke's concentrated-liquidity options product. Liquidity providers deposit into a price range and earn swap fees plus option premiums; options are backed by that range liquidity. ## E * **ERC-6909:** The token standard for a CLAMM liquidity position. A share is a claim on one specific price range, not on the whole pool. * **ERC-721:** The token standard for a CLAMM option position (one NFT per option). * **Exercise:** Activating an option's right to settle. Before expiry the holder exercises through the exercise firewall; at or after expiry an authorized executor settles it. ## I * **Implied Volatility (IV):** The market's expectation of how much an asset will move, a key input to option pricing. * **In-the-Money (ITM):** An option with positive intrinsic value. A call is ITM when the price is above the strike; a put when the price is below it. ## L * **Liquidity Provider (LP):** Someone who deposits assets into a price range to back options and earn swap fees and premiums. ## M * **Merkle Distributor:** The contract that pays out LP fee and premium rewards against a published Merkle root. You claim the difference between your published entitlement and what you have already claimed. ## O * **Out-of-the-Money (OTM):** An option with no intrinsic value. A call is OTM below the strike; a put above it. OTM options become profitable only if the price moves past the strike by more than the premium paid. ## P * **Premium:** The price the buyer pays for an option. * **Prism:** Stryke's indexer. It tracks CLAMM activity and computes each LP's fee and premium entitlements. * **Protocol Fee:** A fee taken by the protocol on a trade, separate from the premium. Protocol revenue, not an LP return. * **Put Option:** A contract giving the buyer the right, but not the obligation, to sell an underlying asset at a set strike price before expiry. Used to speculate on a price fall or to hedge. ## R * **Range:** The lower and upper price bounds an LP deposits into. A narrower range concentrates liquidity, with more fee exposure while price stays in range and more sensitivity to price moves. ## S * **Settlement:** The process that releases an option's backing liquidity and pays the holder their profit. On CLAMM a worker settles expired options daily at 08:00 UTC. * **StakedSYK:** The current SYK staking system on Robinhood Chain. Stake SYK directly, earn SYK plus approved reward tokens, and withdraw 100% after a short cooldown. * **Strike Price:** The price at which an option can be exercised. * **$SYK:** The Stryke platform token. Stake it to earn a share of platform fees; 60% of those fees buy tokenized stocks distributed to stakers. * **sykASH:** The loss-rebate token. Earned on realized trading losses, it shares 20% of platform fees and is kept by hitting a weekly volume target. ## T * **Tick:** A discrete price point used to define liquidity ranges and option strikes. ## U * **Underlying Asset:** The asset an option is written on. * **Utilization:** The share of an LP's or a market's liquidity currently bound as backing in open options. ## V * **Volatility:** How much an asset's price moves. A core input to option pricing. ## X * **xSYK:** The previous SYK staking token on Arbitrum, being migrated to StakedSYK on Robinhood Chain. xSYK stays redeemable 1:1 for SYK during the migration. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. 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