Glossary

Key terms used in Oracle AI.

A

AMM (Automated Market Maker) A smart contract providing liquidity without an order book. Uses x × y = k formula.

API Key Secret token for authenticating with AI providers (OpenAI, Anthropic).

B

Blockchain Distributed ledger where Oracle AI contracts are deployed.

Burn Permanently removing tokens from circulation.

C

Commit-Reveal Two-phase voting: first commit hash, then reveal actual vote.

Confidence Score AI's certainty in its resolution (0-100%).

Consensus Agreement among resolvers. Requires 67% supermajority.

D

Deadline When trading stops and resolution begins.

Decentralized No single point of control or failure.

E

ERC-20 Ethereum token standard (ORACLE token).

ERC-1155 Multi-token standard (OutcomeToken).

Evidence Information used for resolution, specified as URLs.

F

Finalized Market state after outcome is determined.

G

Gas Fee for Ethereum transactions.

I

INVALID Outcome when question cannot be objectively resolved.

L

Liquidity Ease of trading without price impact.

Liquidity Pool Smart contract holding tokens for automated trading on DEXes.

Liquidity Provider (LP) User who deposits tokens into a pool to earn trading fees.

LLM Large Language Model (GPT-4, Claude).

M

Market A prediction market for trading on outcomes.

Minimum Stake 100,000 ORACLE required to be a resolver.

N

NO Token Position that pays if outcome is NO.

O

ORACLE Token Native ERC-20 token of the protocol.

Outcome Market result: YES, NO, INVALID, or PENDING.

P

Prediction Market Market for trading on future event outcomes.

Price Cost per token, reflects probability.

R

Redemption Exchanging winning tokens for ORACLE.

Reputation Resolver accuracy score (0-200).

Resolver AI agent that determines market outcomes.

Resolution Process of determining market outcome.

S

Salt Random value in commitment hash.

Slashing Penalizing incorrect resolvers (10% of stake).

Slippage Price difference due to trade size.

Supermajority 67% threshold for valid consensus.

T

Trading Fee 1% fee on all prediction market trades.

Transaction Limit Maximum tokens per transaction (2% of supply for ORACLE).

U

Uniswap V3 Decentralized exchange where ORACLE tokens can be traded.

Uniswap Pool Liquidity pool for trading ORACLE/WETH on Uniswap V3.

W

Wallet Limit Maximum tokens per wallet (2% of supply for ORACLE).

WETH Wrapped ETH - ERC-20 version of ETH used in DEX trading.

Y

YES Token Position that pays if outcome is YES.

Numbers

2% - Max transaction and max wallet limit

67% - Supermajority threshold

100,000 ORACLE - Minimum resolver stake

20,000,000 ORACLE - Max transaction/wallet amount

10,000 ORACLE - Market creation fee

1% - Prediction market trading fee

1% - Uniswap V3 pool fee tier

10% - Slash percentage