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

# Glossary

> Key terms used across Theta Labs.

## A

**Available**
The pUSD cash in your account that's ready to deploy in new trades. Available decreases when you open a position and increases when you sell, redeem winning shares, or an option settles in the money.

## B

**Breakeven**
The settlement price at which an options trade neither gains nor loses: strike + premium. Shown for every strike in the options chain.

## C

**Call option**
A contract that pays off when the underlying price finishes above the strike at expiry. On Theta Labs, all options are calls — **Yes Calls** on a market's Yes price and **No Calls** on its No price. The premium you pay is your maximum loss. See also: Yes Call, No Call, Strike.

**CLOB (Central Limit Order Book)**
The trading mechanism used by Polymarket for spot markets. A CLOB matches buy and sell orders based on price and time priority, similar to how stock exchanges work. When you place an order, it is either matched against an existing resting order or sits in the book until a counterparty appears.

## E

**Embedded wallet**
A wallet created and managed inside the Theta Labs app using Privy, with no external browser extension required. When you sign in with email or Google, an embedded wallet is provisioned automatically.

**Event**
The real-world occurrence that a prediction market is asking about — for example, "Will the Federal Reserve cut rates in Q3?" A single event may have multiple associated markets (different outcomes of the same question).

**Expiry**
The date and time an options contract stops trading and settles. Theta Labs lists daily, Mon/Wed/Fri, weekly, and monthly expiries, with a standard expiry time of 8:00 pm ET. For spot markets, "expiry" typically refers to the market's resolution date.

## I

**Implied probability**
The market-consensus likelihood that an event resolves YES, expressed as a price between $0.00 and $1.00 (or equivalently, 0% to 100%). A YES share trading at \$0.72 implies a 72% probability of YES. Prices update continuously as traders buy and sell.

## L

**Liquidity**
A measure of how easy it is to buy or sell in a market without significantly moving the price. High-liquidity markets have many resting orders at tight spreads; low-liquidity markets may have wide spreads or large price impact for moderate-sized trades.

## M

**Market order**
An order to buy or sell immediately at the best available price in the order book. Market orders are filled quickly but give you no price guarantee — in thin markets, the fill price may differ from the last traded price. All spot orders on Theta Labs are market orders today.

**Max return**
The multiple an options contract would return if the market settles at its maximum value, shown in the options chain (e.g. "4.2x").

## N

**No Call**
A call option on a market's **No price** — it pays off when the No price finishes above the strike, i.e. when the event becomes less likely. No Calls play the role that puts play in traditional options.

**NO share**
A binary outcome token that pays $1.00 if the market resolves NO (the event does not happen) and $0.00 if it resolves YES. Buying NO shares is equivalent to betting against the event occurring.

## P

**P\&L (Profit and Loss)**
The total gain or loss on your trading activity. P\&L is split into unrealized (open positions valued at current market prices) and realized (closed or settled positions). See also: Unrealized P\&L, Realized P\&L.

**Polymarket**
The prediction market exchange whose markets Theta Labs offers for spot trading. Polymarket matches trades through a Central Limit Order Book and settles on the Polygon blockchain.

**Premium**
The price you pay to buy an options contract, quoted in cents per contract. The premium is your maximum possible loss — you cannot lose more than what you paid, regardless of how the market moves.

**pUSD**
Your tradeable balance on Theta Labs. USDC deposited on Polygon converts to pUSD automatically, and withdrawals convert back to native USDC.

## R

**Realized P\&L**
The gain or loss from positions you have already closed or that have been settled. Once a trade is closed, the P\&L moves from unrealized to realized and is locked in.

## S

**Settlement (options)**
How an options contract pays out at expiry. The settlement price is the time-weighted average of the underlying market's price over the final 60 minutes before expiry — or exactly 0 or 1 if the market resolves earlier. Each in-the-money contract pays the settlement price minus the strike, in pUSD.

**Settlement (spot)**
The process by which a resolved market pays out. Winning shares are worth \$1.00 each; redeem them from your Portfolio page with the **Redeem** button.

**Sold out**
An options strike whose available supply has been fully purchased. Every contract is backed by collateral locked by the platform's dealer desk, so each strike has finite capacity.

**Spot trading**
Buying and selling YES or NO shares directly on a prediction market at the current market price, funded by your pUSD balance.

**Spread**
The gap between the buying and selling price. On spot markets it's the bid-ask spread of the order book; on options it's the market-making spread built into the dealer's quotes.

**Strike**
In prediction market options, the strike is a probability threshold rather than a dollar price. A Yes Call with a 40% strike pays off when the settlement price finishes **above 40%**. See also: Implied probability.

## U

**Unrealized P\&L**
The gain or loss on positions you still hold, calculated using the current market price. Unrealized P\&L changes continuously as market prices move. It becomes realized P\&L when you close the position or the market settles.

## V

**Volume**
The total value of trades executed in a market. Volume is a useful signal of market activity and interest; high-volume markets tend to have better liquidity and tighter spreads.

## Y

**Yes Call**
A call option on a market's **Yes price** — it pays off when the Yes price finishes above the strike at expiry. Buy Yes Calls when you expect the probability to rise.

**YES share**
A binary outcome token that pays $1.00 if the market resolves YES (the event happens) and $0.00 if it resolves NO. Buying YES shares is equivalent to betting that the event will occur.