Glossary
Strategies and markets
Perpetual future (perp) — A contract for trading an asset's price with no expiry date.
Funding — A regular payment from one side of a perpetual future to the other. It helps keep the contract price close to the asset's market price.
Long / short — A long position gains value when the price rises. A short position gains value when the price falls.
Delta — A measure of how much a position's value changes when the asset's price changes.
Delta-neutral — A strategy that combines offsetting positions to reduce exposure to price changes. It does not eliminate all investment risks.
Hedge — A position intended to reduce the effect of another position's price changes.
Spot — Buying or selling the asset itself at its current market price.
Deposits and returns
APR — Annual percentage rate: an annualised rate before the effect of compounding.
Auto-compounding — Automatically reinvesting earnings into a position.
Share — A unit that represents part of your position in a vault.
Share price — The current value of one vault share.
Pending deposit — A deposit waiting to convert into vault shares. It starts earning when the conversion is complete.
Withdrawal — A request to exchange vault shares for a payout. Requested shares stop earning when the request is submitted; eligibility and processing times depend on the vault.
Cap — The maximum amount a vault accepts. Scrub Money's trading farm vaults have a cap; its delta-neutral vault does not.
High-water mark — The highest level already used to calculate a performance fee. A fee applies to new profit above that level, not to a recovery back to it.
Performance fee — A fee charged on eligible profit. The trading farm vaults charge 10% on profit above the high-water mark.
Mint fee — A fee paid when new vault shares are issued. Trading farm vaults charge 0.25% on new deposits, paid to Scrub Money in addition to the $1 deposit fee.
Trading terms
Slippage — The difference between the price you expect for a trade and the price it fills at.
Leverage — Trading with exposure larger than your margin. This makes price changes have a larger effect on gains and losses.
Margin — Money set aside to support a leveraged position.
Liquidation — When an exchange closes a leveraged position because there is not enough margin to support it.
Drawdown — How far a value has fallen from its previous high.
Trading farm vaults and points
Trading farm vault — A Scrub Money vault that uses automated directional trading and earns venue points. Its share value follows trading gains and losses. The current venues are Arcus and RISEx.
Points — Rewards a venue records for eligible activity. The venue sets how points are earned and whether they can be exchanged for tokens or other rewards.
Share-days — Vault shares held multiplied by time held, used to calculate a depositor’s portion of a farm vault’s reward allocation. Requested withdrawal shares stop accumulating share-days when the request is submitted.
Venue boost — An increase in points credited by a venue, already included in the vault’s displayed farmed points.
Directional trading — Taking long or short positions that gain or lose value as the market moves.