# Glossary

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<summary>PPV</summary>

An on-chain vault that holds and trades a portfolio of prediction-market positions and keeps the strategy running over time by rolling into new markets as older markets resolve or before.

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<details>

<summary>Vault</summary>

An on-chain structure that holds capital and executes a defined strategy, such as allocating funds across prediction markets, managing positions, and handling deposits, withdrawals, and accounting.

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<details>

<summary>NAV (Net Asset Value)</summary>

The total value of a vault’s assets minus liabilities, divided by the number of outstanding share tokens. NAV represents the per-share value of the vault at a given point in time.

</details>

<details>

<summary>Share Token</summary>

A token that represents proportional ownership in a vault. Holding share tokens entitles the holder to a corresponding share of the vault’s assets and performance, based on the current NAV.

</details>

<details>

<summary>Mark-to-Market</summary>

An accounting method where open positions are valued at current market prices rather than their original cost. This ensures the vault’s NAV reflects real-time market conditions.

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<summary>Resolution</summary>

The point at which a prediction market outcome is finalized and settled. Upon resolution, positions convert into payouts or losses based on the verified outcome of the event.

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<details>

<summary>Liquidity</summary>

The ease with which positions or share tokens can be entered, exited, or traded without significantly affecting price. Higher liquidity generally enables smoother rebalancing and more accurate pricing.

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<summary>High-Water Mark</summary>

A performance accounting mechanism where performance fees are only charged on new profits above the vault’s previous highest NAV. This prevents fees from being charged repeatedly on the same gains after drawdowns.

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