> For the complete documentation index, see [llms.txt](https://docs.divaprotocol.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.divaprotocol.io/introduction/what-is-diva-protocol/terminology.md).

# Terminology

### General terms

| Term                 | Description                                                                                                                                                                                                                     |
| -------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Contingent pool      | A programmatic escrow that receives and securely holds funds from users participating in a derivative contract and releases them based on the outcome of a pre-agreed future event, reported by an oracle following expiration. |
| Reference asset      | A metric or event whose outcome determines the payout for long and short position tokens.                                                                                                                                       |
| Long position token  | A conditional claim against the contingent pool's collateral that benefits when the value of the reference asset goes up.                                                                                                       |
| Short position token | A conditional claim against the contingent pool's collateral that benefits when the value of the reference asset goes down.                                                                                                     |
| Collateral token     | ERC20 token that is deposited into a contingent pool and backing the corresponding long and short position tokens.                                                                                                              |
| Expiry               | Time when the position tokens expire and the outcome of the underlying event is assessed.                                                                                                                                       |

### Payoff specific terms

| Term       |                                                                                                              |
| ---------- | ------------------------------------------------------------------------------------------------------------ |
| Floor      | Value of the reference asset at or below which the long token pays out 0 and the short token 1 (max payout). |
| Cap        | Value of the reference asset at or above which the long token pays out 1 (max payout) and the short token 0. |
| Inflection | Value of the reference asset at which the long token pays out Gradient and the short token 1-Gradient.       |
| Gradient   | Long token payout at inflection (value between 0 and 1). The short token payout at inflection is 1-Gradient. |

### Oracle specific terms

| Term          | Description                                                                                                                                |
| ------------- | ------------------------------------------------------------------------------------------------------------------------------------------ |
| Data provider | An Ethereum address (individual account or smart contract) that is supposed to report the final reference value following pool expiration. |


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