# 7. Glossary

* **AI algorithmic trading bots** — automated trading strategies that use AI to analyze markets, generate signals, and optimize parameters within predefined risk limits.
* **AI Copilot** — an assistant that provides analytics, insights, data interpretation, and decision-support for trading.
* **Bitcoin & Ethereum ETF** — exchange-traded funds backed by Bitcoin or Ethereum. Their value tracks the price of the underlying assets. These instruments are primarily popular among institutional investors, as they enable large-scale fiat exposure to leading cryptocurrencies.
* **CEX (Centralized Exchange)** — a cryptocurrency exchange with custodial asset storage, centralized order matching, and KYC procedures. CEXs typically offer simpler interfaces than DEXs but carry security risks, including hacks and asset freezes.
* **DeFi (Decentralized Finance)** — decentralized financial services operating on blockchains via smart contracts without intermediaries, primarily providing access to services such as staking and yield farming.
* **DEX (Decentralized Exchange)** — a decentralized cryptocurrency exchange that does not custody user funds and operates via smart contracts and liquidity pools.
* **Fiat On/Off-ramp** — infrastructure that enables conversion between cryptocurrencies and fiat currencies, allowing users to deposit and withdraw fiat funds.
* **PERP Trading (Perpetuals)** — trading perpetual futures on DEXs without an expiration date, using a funding rate mechanism.
* **Rug Pull** — a fraudulent practice in which a project team abruptly withdraws liquidity or sells tokens, causing a sharp collapse in price.
* **RWA (Real-World Assets)** — tokenized real-world assets such as bonds, real estate, or commodities.
* **TradFi (Traditional Finance)** — the traditional financial system, including banks, brokers, stock exchanges, and regulated financial institutions.
* **UI / UX** — user interface and user experience, defining the usability and efficiency of interaction with a digital application.
* **Web2 traders (TradFi)** — traders transitioning from traditional finance and Web2 platforms, accustomed to custodial services and centralized infrastructure.
* **Liquidity aggregator** — a service that combines liquidity from multiple sources and routes orders through the most efficient execution path.
* **DAO governance (Voting)** — a decentralized protocol management mechanism based on token-holder voting.
* **Derivatives** — financial instruments whose value is derived from an underlying asset (futures, options, perpetuals).
* **Airdrop** — free distribution of tokens to users for activity, participation, or loyalty.
* **Closed Loop** — an ecosystem model in which assets and settlements occur entirely within a single platform without external transfers.
* **Cross-chain** — technologies and protocols that enable interaction and asset transfers between different blockchains.
* **Liquidity** — a measure of how easily an asset can be bought or sold at a fair price without significant price impact.
* **Listing** — the addition of a token or trading pair to an exchange or protocol.
* **Market Makers** — market participants that provide liquidity by continuously placing buy and sell orders.
* **Prediction Markets** — markets that allow users to speculate on the outcomes of future events, implemented via blockchain and smart contracts.
* **Seed Round** — an early-stage investment round involving venture capital investors or funds.
* **Synthetic Assets** — tokens that replicate the price of other assets using derivative and collateral mechanisms.
* **Spot Trading** — trading assets with immediate settlement at the current market price and without leverage.
* **Staking** — locking tokens to support a network or protocol in exchange for rewards or governance rights.
* **Yield Farming** — a DeFi strategy for generating returns by providing liquidity or participating in protocols.