> ## Documentation Index
> Fetch the complete documentation index at: https://docs.boltliquidity.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Glossary

> Key terms and definitions for understanding Bolt's architecture, execution model, and integration surface. Terms are grouped by domain for quick navigation.

## Core architecture

<AccordionGroup>
  <Accordion title="Bolt" icon="bolt">
    The zero slippage execution layer. A prop-AMM that uses oracle-referenced pricing to deliver deterministic swap execution on Sui and Archway. The price you see is the price you get.
  </Accordion>

  <Accordion title="Prop-AMM" icon="cube">
    Proprietary automated market maker. The category Bolt occupies. Unlike traditional AMMs, a prop-AMM uses oracle-referenced pricing rather than bonding curves, decoupling execution quality from liquidity depth.
  </Accordion>

  <Accordion title="Adaptive Velocity Oracle (AVO)" icon="satellite-dish">
    Bolt's pricing engine. The AVO ingests real-time order books from multiple centralized exchanges, applies a 6-step EMA velocity model to predict where price is heading, and sizes spreads using Avellaneda-Stoikov market-making theory. Prices are derived from depth-weighted composite mid-prices with staleness filtering and outlier rejection. The AVO is the trust boundary of the system: every other component validates its output rather than computing prices independently.
  </Accordion>

  <Accordion title="Outpost" icon="building">
    A Bolt smart contract deployed on a supported chain (Sui or Archway) that validates oracle prices, executes swaps atomically, and manages its own liquidity pool. Each Outpost is the on-chain entry point for traders and integrators.
  </Accordion>

  <Accordion title="Market Maker" icon="arrows-rotate">
    The entity responsible for three sequential roles in every Bolt swap: **Order Settlement** (immediately providing liquidity to the user on-chain at the oracle-validated price), **Hedging** (closing the resulting directional exposure on external venues), and **Rebalancing** (returning assets to the Outpost pool to restore inventory). These three roles form the continuous cycle that enables capital-efficient execution.
  </Accordion>
</AccordionGroup>

## Pricing and execution

<AccordionGroup>
  <Accordion title="Zero Slippage" icon="equals">
    The property where trade size does not affect the execution price. Achieved in Bolt because pricing is oracle-derived, not pool-depth-derived. A \$100 swap and a \$1,000 swap receive the same price relative to the market.
  </Accordion>

  <Accordion title="AVO Price Verification" icon="shield-check">
    The verification layer within the Adaptive Velocity Oracle. Fair value is adjusted by net inventory using Avellaneda-Stoikov reservation pricing, the on-chain price is clamped to a maximum deviation of 0.7% per tick from the composite mid, and every fill is scored for flow toxicity within 100 to 500ms. This ensures execution quality is verifiable and the on-chain price cannot deviate meaningfully from real-time market consensus.
  </Accordion>

  <Accordion title="Contract Math" icon="square-root-variable">
    The mathematical logic within the Outpost smart contract that calculates `amountOut` from `amountIn`, oracle price, and fee parameters. Deterministic and replicable off-chain. See [Contract Math reference](/contract-math).
  </Accordion>

  <Accordion title="Off-Chain Quoting" icon="calculator">
    The practice of simulating Bolt swap outputs locally by replicating the contract math with indexed pool state and oracle prices. Eliminates the need for on-chain quote calls. Critical for aggregator route evaluation and UI price display. See [Off-Chain Quoting reference](/off-chain-quoting).
  </Accordion>

  <Accordion title="Price Expiration" icon="clock">
    A time window on each oracle price. The Outpost rejects any swap where the oracle price has expired, preventing stale pricing from being exploited.
  </Accordion>

  <Accordion title="Deviation Limit" icon="triangle-exclamation">
    A safety parameter on the Outpost that rejects swaps when the oracle price deviates beyond a configured threshold from the last known market price. Acts as a circuit breaker during extreme volatility.
  </Accordion>
</AccordionGroup>

## Liquidity and capital

<AccordionGroup>
  <Accordion title="Single-Sided Deposit" icon="arrow-down-to-bracket">
    A liquidity provision model where LPs deposit a single asset into an Outpost pool. No paired asset requirement and no price range to manage. The simplest way to provide liquidity in DeFi.
  </Accordion>

  <Accordion title="Delta-Neutral" icon="scale-balanced">
    A hedging strategy where the market maker offsets all directional exposure from on-chain swaps by taking opposite positions on external venues. This protects pool capital from market movements and eliminates impermanent loss for LPs.
  </Accordion>

  <Accordion title="Impermanent Loss" icon="chart-line-down">
    The loss LPs experience in traditional AMMs when the price of deposited assets diverges from the deposit-time price. Bolt LPs do not experience impermanent loss because the market maker hedges all directional exposure.
  </Accordion>

  <Accordion title="Throughput-to-Capital Ratio" icon="gauge-high">
    A measure of capital efficiency: daily volume divided by deployed capital. Across 16 SUI/USDC pools on Sui spanning 4 AMM architectures, the volume-weighted peer mean is 1.28x. Bolt's turnover rate of 29.7x is a consequence of oracle-referenced pricing: when the price comes from an oracle rather than a bonding curve, capital only needs to settle the trade, not set the price.
  </Accordion>

  <Accordion title="Pool State" icon="database">
    The current on-chain state of an Outpost pool, including available inventory per asset, fee parameters, oracle references, and minimum swap amounts. Indexing pool state is essential for off-chain quoting. See [Pool State Indexing reference](/pool-state-indexing).
  </Accordion>
</AccordionGroup>

## Infrastructure

<AccordionGroup>
  <Accordion title="IBC (Inter-Blockchain Communication)" icon="link">
    The Cosmos-native messaging standard used by Bolt on Archway for cross-chain asset transfers. Enables assets like TIA, ATOM, and OSMO to be traded through Bolt on Archway.
  </Accordion>

  <Accordion title="CosmWasm" icon="code">
    The smart contract framework used for Bolt's Archway deployment. Bolt Outposts on Archway are CosmWasm contracts written in Rust.
  </Accordion>

  <Accordion title="Move" icon="code">
    The smart contract language used for Bolt's Sui deployment. Bolt Outposts on Sui are Move modules.
  </Accordion>
</AccordionGroup>

***

<Tip>
  Looking for something specific? Use `Cmd+F` (or `Ctrl+F`) to search this page, or check the [FAQ](/faq) for answers to common questions.
</Tip>