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The intent here is to establish and refine a Ubiquitous Language (in the DDD sense) that can help guide our efforts in building out the ambitious feature set of Bisq 2.0. The terms laid out here attempt to cover most of the points mentioned in the original Bisq 2.0 proposal at bisq-network/proposals#330 and also include some original insights that emerged during the process. The document is and will remain a work in progress, but is now in good enough shape to share and get feedback on. Fixes #31
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| # Glossary | ||
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| Bisq | ||
| -------- | ||
| A peer-to-peer [Asset](#asset) [Exchange](#exchange) system | ||
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| Asset | ||
| -------- | ||
| Property divisible into fungible [Units](#unit). | ||
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| > **Gold**, the **US dollar** and **bitcoin** are commonly held _assets_ | ||
| ### Asset Code | ||
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| A short, unique series of characters used to identify an [Asset](#asset) | ||
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| > **XAU**, **USD** and **BTC** are the _asset codes_ for gold, the US dollar and bitcoin | ||
| Also known as _[Currency](#currency) Code_ | ||
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| <details> | ||
| Where a given Asset is a recognized Currency, its asset code will correspond with its ISO 4217 currency code value. | ||
| </details> | ||
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| ### Currency | ||
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| An [Asset](#asset) used as a medium of exchange in a given region | ||
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| > The **bolívar** is Venezuela's official _currency_ | ||
| ### Nominal Asset | ||
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| An abstract representation of an [Asset](#asset) inclusive of all its [Real](#real-asset) forms but not transferable on its own | ||
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| > **USD**, **USDT**, **USDC** and **BTC** are _nominal assets_ | ||
| ### Real Asset | ||
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| A digital or physical manifestation of an [Asset](#asset) that is transferable and therefore suitable for [Settlement](#settlement) | ||
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| > **Federal reserve notes** (physical cash), **bank deposits**, **L-USDT**, **ERC20-USDT** and **ERC20-USDC** are all _real assets_ suitable for settling USD contracts. **Mainchain BTC**, **Lightning BTC**, **L-BTC** and **WBTC** are all _real assets_ suitable for settling BTC contracts. | ||
| ### Unit | ||
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| A named quantity of an [Asset](#asset) | ||
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| > US dollar _units_ include the **cent** and the **dollar**. Bitcoin _units_ include **sats** and **bitcoin**. | ||
| #### Base Unit | ||
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| The smallest transferable [Unit](#unit) of an [Asset](#asset) | ||
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| > The _base unit_ of the US dollar is the **cent**. The _base unit_ of bitcoin is the **sat**. | ||
| #### Derived Unit | ||
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| A named quantity of [Base Units](#base-unit) | ||
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| > The **dollar** is a _derived unit_ representing one hundred cents. The **bitcoin** is a _derived unit_ representing one hundred million sats. | ||
| #### Standard Unit | ||
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| The [Unit](#unit) most commonly used when quantifying an [Asset](#asset) | ||
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| > Today, the _standard unit_ for bitcoin is **bitcoin**, as in "she saved up 6.15 **bitcoin**". Someday the standard unit for bitcoin may change to the **sat**. | ||
| ### Amount | ||
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| A number of [Units](#unit) | ||
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| > The _amount_ transferred was **6.15 bitcoin**. | ||
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| Exchange | ||
| -------- | ||
| To give one [Amount](#amount) and receive another | ||
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| > Alice _exchanged_ **1 bitcoin** with Bob for **42,000 US dollars** | ||
| ### Asset Pair | ||
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| #### Base Asset | ||
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| aka _Base Currency_ | ||
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| #### Counter Asset | ||
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| aka _Counter Currency_ | ||
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| ### Price | ||
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| Also known as _Exchange Rate_ | ||
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| Contract | ||
| -------- | ||
| An agreement between [Parties](#party) to [Exchange](#exchange) according to a set of [Terms](#terms) | ||
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| _See [Contract Types](#contract-types)_ | ||
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| ### Offer | ||
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| A proposal to enter into a [Contract](#contract) | ||
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| > Alice created a [Spot Trade](#spot-trade) _offer_ to sell between 0.1 and 0.2 BTC for USD at a [Price](#price) of $32,000 with [Security Method](#security-method) options including _Bitcoin Mainchain double-key escrow_ and _BSQ bond_ and [Settlement Method](#settlement-method) options including Mainchain BTC and Lightning BTC on the BTC side and Swift Transfer or L-USDT on the USD side. | ||
| <details> | ||
| Note that the Taker's choice of Security Method has a constraining effect on the Settlement Method that can be used. If the Taker chooses the Bitcoin Mainchain double-key escrow Security Method, they will have to Settle the BTC side using Mainchain BTC, while they will remain free to choose how they want to Settle the USD side. If, on the other hand, they choose the BSQ bond Security Method, they are free to choose any of the offered Settlement Method options for both the BTC and USD sides. | ||
| </details> | ||
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| ### Party | ||
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| A person or group of people forming one side of a [Contract](#contract) | ||
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| > **Alice** and **Bob** were _parties_ to the contract | ||
| Also known as _Counterparty_ | ||
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| #### Maker | ||
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| A [Party](#party) who creates an [Offer](#offer) | ||
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| #### Taker | ||
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| A [Party](#party) who accepts an [Offer](#offer) | ||
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| ### Terms | ||
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| Requirements stipulating [Conditions](#condition) for and [Amounts](#amount) to be exchanged as well as [Security](#security-method), [Settlement](#settlement-method) and [Adjudication](#adjudication-method) methods to be used during [Contract](#contract) [Execution](#execution) | ||
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| #### Condition | ||
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| An objective state that must be realized in order for [Contract](#contract) [Fulfilment](#fulfillment) to begin | ||
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| > Example _conditions_ include **the passage of a certain amount of time** or **a fact being reported on a certain date** | ||
| #### Security Method | ||
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| The means used to keep [Assets](#asset) safe during [Contract](#contract) [Execution](#execution) | ||
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| #### Settlement Method | ||
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| The means used to transfer ownership of [Assets](#asset) | ||
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| #### Adjudication Method | ||
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| The means used to resolve problems and disputes during [Contract](#contract) [Execution](#execution) | ||
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| Contract Lifecycle | ||
| -------- | ||
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| ### Proposal | ||
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| ### Negotiation | ||
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| ### Acceptance | ||
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| ### Execution | ||
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| The process of carrying out the [Terms](#terms) of a [Contract](#contract) after [Acceptance](#acceptance) through to [Conclusion](#conclusion) | ||
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| #### Fulfillment | ||
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| #### Settlement | ||
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| The process of transferring ownership of an [Asset](#asset) from one [Party](#party) to another | ||
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| ##### Settlement Account | ||
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| User-specific details for a given settlement method | ||
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| <details> | ||
| - Known in Bisq 1.x as Payment Account<br> | ||
| - Now necessary for both Base Asset and Counter Asset | ||
| </details> | ||
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| ##### Settlement Period | ||
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| #### Conclusion | ||
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| ##### Termination | ||
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| ###### Adjudication | ||
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| ###### Enforcement | ||
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| #### Completion | ||
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| Contract Types | ||
| -------- | ||
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| ### Spot Trade | ||
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| A [Contract](#contract) for immediate [Fulfilment](#fulfillment) | ||
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| <details> | ||
| This is the only contract type supported in the Bisq 1.x line. | ||
| </details> | ||
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| ### Forward Trade | ||
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| A [Contract](#contract) for obligatory [Fulfilment](#fulfillment) on a future date | ||
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| ### Option | ||
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| A [Contract](#contract) for optional [Fulfilment](#fulfillment) on (or possibly before) a future date | ||
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| <details> | ||
| Notes: | ||
| - Advantage for the maker is the premium realized by the strike price<br> | ||
| - Requires additional transaction for taker to buy the option itself at its given strike price<br> | ||
| - Cancellable without penalty (because premium has already been paid)<br> | ||
| - https://www.investopedia.com/articles/active-trading/112213/getting-handle-options-premium.asp<br> | ||
| - https://money.stackexchange.com/questions/81612/why-would-someone-want-to-sell-call-options#81616<br> | ||
| </details> | ||
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| #### Call Option | ||
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| An [Option](#option) to _buy_ the underlying [Asset](#asset) | ||
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| #### Put Option | ||
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| An [Option](#option) to _sell_ the underlying [Asset](#asset) | ||
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| ### Loan | ||
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| A [Contract](#contract) in which a lender gives a borrower [Principal](#principal) to be returned with [Interest](#interest) | ||
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| > Bob took a _loan_ from Alice for **100,000 USDT repayable in 12 months with 8% APY interest** | ||
| <details> | ||
| - May involve an additional up-front "loan origination" fee to protect lender against early (i.e. no- or low-interest) payback<br> | ||
| - Secured loans would include over-collateralized loans<br> | ||
| - would require 3rd key and forced liquidation / margin call schedule<br> | ||
| - Unsecured loans possible. Just as any exchange could be unsecured.<br> | ||
| </details> | ||
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| #### Principal | ||
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| An [Amount](#amount) representing an investment | ||
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| #### Interest | ||
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| An [Amount](#amount) representing the time value of [Principal](#principal) used | ||
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| ### Bet | ||
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| A [Contract](#contract) in which two [Parties](#party) agree to give the other an [Amount](#amount) and receive nothing in return based on a [Fact](#fact) in the future. | ||
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| > Alice _bet_ Bob **50,000 sats** that the **Giants would win by 10 points tomorrow night** | ||
| #### Fact | ||
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| A thing that is known or proven to be true | ||
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| > It is a _fact_ that the score of last night's game was 31-13 | ||
| #### Oracle | ||
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| A [Fact](#fact) reporter | ||
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| #### CFD | ||
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| _(Contract for Difference)_ | ||
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| A [Bet](#bet) where the [Amount](#amount) is based on the difference between the current and future value of an [Asset](#asset) | ||
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