Learn the words before you trust the numbers.

The yearly return rate shown by a protocol.

APY means Annual Percentage Yield. It is the rate a user might earn over a year if current conditions stay the same. It can change quickly.

How much value is sitting in a protocol.

TVL means Total Value Locked. It is the amount of money deposited into a protocol and is a rough signal of scale and trust.

Borrowing to make positions bigger.

Leverage means using borrowed funds to increase exposure. It can boost gains, but losses also get bigger faster.

How fast and hard prices move.

Volatility describes the size of price swings. High volatility means large, frequent movement. Low volatility means calmer markets.

The rate traders pay or receive to stay positioned.

Funding is the rate used in perpetual markets to keep long and short positions balanced. It can support yield when the spread is favorable.

A forced close when a leveraged position gets too risky.

Liquidation happens when a leveraged position no longer has enough collateral and the system closes it to limit losses.

The current market mood or behavior.

A regime is the current market environment, such as trend-heavy, volatile, or calm. Different protocols work better in different regimes.

How much of a pool is already being used.

Utilization measures how much deposited capital is currently borrowed or deployed. Higher utilization can push rates higher and change risk quickly.