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#Options and payoff terms

Term	Meaning
Underlying	The asset whose price determines a derivative's value.
Stock Token	A standard ERC-20 issued by Robinhood Assets (Jersey) Limited that provides economic exposure to a share or ETF under its terms.
Covered call	Long underlying plus a short call on an equivalent quantity.
Call option	A contract giving its holder the right, subject to its terms, to buy or receive upside above a strike; the seller bears the corresponding obligation.
Strike	The reference price at which call upside begins.
Expiry	The time at which an expiring option's terminal rights or payoff are determined.
Premium	Compensation paid for the option; not guaranteed profit for the seller.
Moneyness	The relationship between spot price and strike.
ITM	In the money: a call has intrinsic value when spot is above strike.
ATM	At the money: spot is at or close to strike.
OTM	Out of the money: a call has no intrinsic value when spot is below strike.
Assignment	A process that obligates an option seller to perform after exercise under the contract's rules.
Exercise	Use of an option holder's contractual right.
Settlement	The process that converts an expired or exercised obligation into asset or cash-equivalent transfers.
Intrinsic value	For a call at a given price, max(spot − strike, 0).
Time value	The portion of option value beyond intrinsic value, reflecting remaining uncertainty and time.
Payoff	The value delivered by a position as a function of market state, often evaluated at expiry.
PnL	Profit and loss relative to an entry cost or marked value.

#Risk and pricing terms

Term	Meaning
Implied volatility	The volatility input consistent with an observed option price under a chosen pricing model.
Realized volatility	The variability actually observed in underlying returns over a period.
Delta	Sensitivity of option value to a small change in underlying price.
Gamma	Sensitivity of delta to a small change in underlying price.
Theta	Model sensitivity of option value to the passage of time, holding other inputs fixed.
Vega	Sensitivity of option value to implied volatility.
Notional	Reference quantity or value used to size an exposure.
Multiplier	The ERC-8056 factor that maps a Stock Token's raw ERC-20 balance to its displayed economic quantity.
Liquidity	The ability to transact size without excessive delay or price impact.
Slippage	Difference between an expected price and the effective execution price.
Basis	The difference between the price of a derivative or synthetic exposure and its reference market.
Funding rate	A periodic transfer between long and short perpetual positions intended to help align the contract with its reference.
Liquidation	Forced reduction or closure of a margined position after collateral falls below required levels.

#Onchain market terms

Term	Meaning
AMM	Automated market maker: a rules-based mechanism that prices and exchanges assets against pooled reserves.
CFMM	Constant Function Market Maker: an AMM that restricts reserve changes through a trading function or invariant.
RMM	Replicating Market Maker: research framework for constructing a CFMM whose LP value approximates a target payoff.
Arbitrage	Trading price differences across venues; in an RMM, arbitrage is part of how pool reserves follow the intended state.
Replicating portfolio	A portfolio constructed to reproduce a target derivative's value or payoff under specified assumptions.
Oracle	A mechanism that brings external data or an attested value into a blockchain system.
Robinhood Chain	An Ethereum-compatible Layer 2 on which Stock Tokens and their supporting contracts are deployed.
Canonical contract	The contract address identified for an asset by Robinhood Chain's official registry or Stock Token API.
Price feed	An onchain data source that reports a Stock Token price and incorporates its active multiplier.
Corporate action	An issuer event such as a split, merger, distribution or symbol change that can alter economic units or rights.