> The index of every page is at https://docs.nova.markets/llms.txt. The complete documentation in one file is at https://docs.nova.markets/llms-full.txt.

# Glossary

Address: https://docs.nova.markets/#/glossary
Section: Reference

Every keyword in these docs, one line each. When a page uses a term, this is what it means.

## Conviction Markets

- **Conviction Markets:** The new primitive for market formation: decides what Nova lists next
- **Conviction Drop:** One listing event: the backing, the launch of the winning market, and the distribution of its Conviction Token. "The Drop" for short
- **Conviction Points:** Your balance. Earned by trading and by providing liquidity to the Conviction Pool; spent on Conviction Drops
- **Backers:** Everyone who spent points in a Drop. The winner's backers are those who spent on the market that listed; they get a boosted share
- **Conviction Token:** The token that gives holders a lifetime share of its fees. One per listed market; pays 75% of its market's trading fees (opening and closing) pro rata to its holders
- **Candidate:** One of the 3 proposed markets you can back in a Drop, shortlisted by the Nova team from community proposals. Losers stay, and can run again
- **Sealed:** While a Drop is open, nothing that shows who backed what is published. At the Drop, the full Drop becomes public, permanently

## Trading

- **Nova market:** A market listed from a Conviction Drop, trading against the Conviction Pool at the oracle price
- **Conviction Pool:** The one pool behind every Nova market: the counterparty to every trade, funded by depositors
- **Opening fee:** The per-market fee to open a position, charged on notional. Together with the closing fee, this is the trading fee Conviction Tokens pay from
- **Closing fee:** The same rate as the opening fee, charged on notional when the position closes. Open plus close is twice the one-side fee
- **Spread & price impact:** Adjustments to the oracle price at execution: a fixed per-market spread, plus dynamic impact from your size and the market's skew
- **Holding fees:** The two costs of keeping a position open: the borrowing fee (paid to the pool) and the funding fee (paid between longs and shorts; it can pay you)
- **Lists / graduates:** A market *lists* on Nova when it wins its Drop; it *graduates* from Nova directly to Hyperliquid when it shows sustained activity
- **Liquidation price:** Shown before you open: where losses, fees included, close the position automatically
- **Epoch:** The Conviction Pool's clock: open PnL is marked on epoch boundaries, and withdrawals settle on them