An educational crypto, finance, and AI vocabulary puzzle about collateral rules, market quotes, retrieval systems, and model review.
On-Chain Credit Controls
These terms cover collateral, risk buffers, forced liquidation, and credit limits.
- Collateral Ratio: The collateral ratio compares the value posted as collateral with the value of the debt or exposure it backs.
- Health Factor: The health factor is a risk metric that shows how close a borrowing position is to liquidation.
- Liquidation Threshold: The liquidation threshold is the collateral level at which a position can be forcibly closed.
- Borrow Cap: A borrow cap is the maximum amount that can be borrowed against a market, asset, or protocol reserve.
Price Discovery Basics
These terms cover market depth, quoted gaps, execution drag, and size increments.
- Depth: Depth is the amount of buy and sell interest available around the current market price.
- Spread: The spread is the difference between the best bid and the best ask in a market.
- Slippage: Slippage is the difference between the expected price and the price a trade actually gets.
- Tick Size: Tick size is the minimum price step a market allows between quoted levels.
Retrieval Stack
These terms cover vectors, search, ranking, and the store that supports them.
- Embedding: An embedding is a numeric representation that captures meaning or similarity.
- Retrieval: Retrieval is the act of fetching useful external information for a model or agent.
- Reranker: A reranker is a model that reorders retrieved items to put the most relevant ones first.
- Vector Database: A vector database stores embeddings so similar items can be searched efficiently.
Evaluation Oversight
These terms cover harnesses, adversarial review, isolation, and human checkpoints.
- Eval Suite: An eval suite is a set of tests and metrics used to measure how a model or agent behaves.
- Red Teaming: Red teaming is the practice of probing a system for weaknesses by trying to make it fail.
- Sandboxing: Sandboxing runs code or actions in a restricted environment with limited permissions.
- Human in the Loop: Human in the loop means a person reviews, corrects, or approves key outputs or actions.