A - D
A
Adjusted Market Cap (AMC) An adjusted version of market capitalization that accounts for circulating supply: Adjusted Market Cap = Total Market Cap × Free Float Factor. Reflects the investable portion of an asset and prevents overweighting illiquid or tightly held tokens.
Allocation The proportional distribution of capital across index constituents based on the selected weighting methodology (e.g., market cap, equal weight, or custom logic).
Alpha (α) A performance metric that measures the excess return of an asset or portfolio relative to a benchmark or model prediction (e.g., CAPM). A positive alpha indicates outperformance, while a negative alpha indicates underperformance. (See Analytics Calculation for the formula.)
AML (Anti-Money Laundering) A regulatory framework designed to prevent illicit financial activity such as money laundering or terrorist financing. Closely linked to compliance processes like KYC (Know Your Customer) and KYB (Know Your Business).
AUM (Assets Under Management) The total value of assets managed within a fund or portfolio, typically used as a measure of scale and investor confidence.
Asset A digital instrument (cryptocurrency, token, stablecoin, or tokenized real-world asset) that can be traded or included in a portfolio.
Asset Screening The process of filtering assets for inclusion in an index or fund, using criteria such as liquidity, market capitalization, volatility, and governance. (See Asset Selection Filters for details.)
Asset Trading Halt A temporary suspension of trading for a specific asset, usually due to technical issues, regulatory intervention, or extreme volatility.
ATH (All-Time High) The maximum historical price ever reached by an asset since inception.
B
Base An Ethereum Layer 2 blockchain developed by Coinbase, designed for scalability, low-cost transactions, and compatibility with the Ethereum ecosystem. (See Deployment Layer for details.)
Benchmark A standard or reference point used to compare the performance of an asset, index, or portfolio. (See Benchmarks for details.)
Bearish A market outlook or sentiment that expects asset prices to fall. Investors or traders with a bearish stance often take short positions (selling or borrowing the asset to profit from a downward move).
Beta (β) A measure of an asset’s sensitivity to overall market movements.
A beta greater than 1 indicates higher volatility than the market.
A beta less than 1 indicates lower volatility.
A beta of 1 means the asset moves in line with the market. (See Analytics Calculation for the formula.)
Black-Scholes Model (BSM) A mathematical model used for pricing options, particularly European-style options.
Blockchain A decentralized, immutable digital ledger that records transactions and supports the execution of smart contracts.
Breaches Security incidents or exploit events that compromise systems, such as contract vulnerabilities or oracle manipulation. (See Risk Management for details.)
Bullish A market outlook or sentiment that expects asset prices to rise. Investors or traders with a bullish stance often take long positions (buying the asset to profit from an upward move).
Buybacks The process of repurchasing tokens or shares from the market, often used to stabilize price or redistribute value.
C
Call Option A derivative contract that gives the holder the right, but not the obligation, to buy an asset at a predetermined strike price before or on its expiration date. Call options are often used to speculate on rising prices or to hedge. They are the opposite of put options, which give the right to sell. (See Option Module for details.)
CAPM (Capital Asset Pricing Model) A financial model that describes the relationship between an asset’s expected return and its risk relative to the market. CAPM is widely used to calculate the cost of capital, assess portfolio efficiency, and evaluate whether an asset provides adequate compensation for its risk. (See Analytics Calculation for the formula.)
CEX (Centralized Exchange) A custodial trading platform that facilitates the buying and selling of digital assets, such as Binance, Coinbase, or Kraken.
Circulating Market Capitalization The market capitalization of a token calculated using only its circulating supply, excluding locked or vested tokens. (See Emission Model for details.)
Cliff Period An initial period in a vesting schedule during which no tokens are released. After the cliff, token unlocks begin.
Cold Reserve Funds or assets stored in offline wallets, disconnected from the internet, to enhance security.
Compounding Mechanisms Automated systems or contracts that reinvest rewards to generate additional returns over time.
Concentration Ratio A measure of how much an index or portfolio is exposed to its largest constituents, often used to assess diversification. (See Analytics Calculation for the formula.)
Concentration Risk The risk that a portfolio or index relies too heavily on a small number of assets, increasing vulnerability to shocks. (See Analytics Calculation for the formula.)
Contract Calls Onchain transactions that interact with smart contracts, such as minting, redeeming, or rebalancing.
Corporate Bonds Debt securities issued by corporations, which may also be tokenized for blockchain-based trading. (See Tokenized TradFi Assets for details.)
Custody / Custodian The safekeeping of assets by a trusted entity (custody) or the institution providing this service (custodian).
In traditional finance, custodians are regulated financial institutions (e.g., State Street, BNY Mellon) that hold client securities securely.
In crypto, custody can be managed through centralized custodians, decentralized smart contract systems, or hybrid models that combine both. (See Custody for details.)
CVaR (Conditional Value at Risk) A risk metric estimating the expected losses that exceed a given Value at Risk (VaR) threshold, focusing on tail risk. (See Analytics Calculation for the formula.)
D
DAO (Decentralized Autonomous Organization) A governance structure based on smart contracts, where decisions are made collectively by token holders through voting mechanisms.
DeFi (Decentralized Finance) An ecosystem of permissionless financial protocols built on blockchain, enabling services like trading, lending, and derivatives without intermediaries.
Decentralized Infrastructure A system architecture where core functions (pricing, execution, governance) are governed by smart contracts and decentralized oracles rather than central entities.
Delta A measure of how sensitive the price of an option is to changes in the price of its underlying asset.
Delta Neutral Strategy A portfolio or trading strategy designed to offset directional market risk by balancing long and short positions or using derivatives.
DEX Swap An onchain transaction that directly exchanges one token for another through a decentralized exchange (DEX), typically using an Automated Market Maker (AMM). Unlike derivative swaps, DEX swaps are simple spot trades executed instantly on blockchain liquidity pools.
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