> For the complete documentation index, see [llms.txt](https://ton-hedge.gitbook.io/ton-hedge-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ton-hedge.gitbook.io/ton-hedge-docs/user-manual/glossary.md).

# Glossary

| Term                    | Description                                                                                                                                                                                                                                                                                                                                                              |
| ----------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| **Epoch**               | A 1-week period during which service fees are accumulated in the contract for further distribution among $THC stakers.                                                                                                                                                                                                                                                   |
| **Exercising Option**   | Act of utilizing an option to immediately receive profit in **USDT** directly to the option holder's wallet, and unlock covered funds in the liquidity pool.                                                                                                                                                                                                             |
| **Expiration Date**     | The last date on which an option can be exercised by holder. After this date option is expired, and is exercised automatically.                                                                                                                                                                                                                                          |
| **Option Period**       | The time frame during which an option can be exercised by holder. After this period option is expired, and is exercised automatically                                                                                                                                                                                                                                    |
| **Options Trading**     | Speculating on price movements or hedge against risks.                                                                                                                                                                                                                                                                                                                   |
| **PnL**                 | Profit and Loss from trading activities or exercising options.                                                                                                                                                                                                                                                                                                           |
| **Premium**             | The price paid to purchase an option, which is fully transferred to the liquidity pool.                                                                                                                                                                                                                                                                                  |
| **Providing Liquidity** | Staking of USDT in the pool to share in the profits from selling options.                                                                                                                                                                                                                                                                                                |
| **Put Option**          | An option that gives the holder the right to earn from the price difference with the strike price in case of a price drop.                                                                                                                                                                                                                                               |
| **Call Option**         | An option that gives the holder the right to earn from the price difference with the strike price in case of sharp rising price.                                                                                                                                                                                                                                         |
| **Service Fee**         | A fee charged from each option sold.                                                                                                                                                                                                                                                                                                                                     |
| **Taker Fee**           | A fee paid by the option buyer.                                                                                                                                                                                                                                                                                                                                          |
| **Maker Fee**           | A fee taken from the funds of the liquidity pool.                                                                                                                                                                                                                                                                                                                        |
| **Slippage**            | Amount of USDT appended to the option cost, that covers potential asset price fluctuations while transaction is processing. All excesses return back to the buyer.                                                                                                                                                                                                       |
| **Strike Price**        | The predetermined price at which the option can be exercised. You can only exercise Call option, when the current asset price is above the strike price, or is below the strike price for Put option. By default it is **ATM** (at the money), which means the current asset market price. It is also possible to set further strike prices to bet on higher volatility. |
| **THC Token**           | The native token of TON Hedge used for profit sharing.                                                                                                                                                                                                                                                                                                                   |
| **THLP Token**          | LP token of the liquidity pool, representing the share in the pool.                                                                                                                                                                                                                                                                                                      |