> For the complete documentation index, see [llms.txt](https://superp.gitbook.io/superp-litepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://superp.gitbook.io/superp-litepaper/noliquidation-perp-psc/terms-and-definitions.md).

# Terms and Definitions

### **Position**

In Superp NoLiquidation Perp, a **position** refers to the active state of a user’s trade after purchasing a specific contract. It represents:

* The **direction** of the trade (**Call** or **Put**).
* The **quantity** of the contract purchased, determining exposure to potential profits or losses.

### **Entry**

The **entry** price is the initial index price of the underlying asset at the time the user purchases the NoLiquidation Perp. This price becomes the benchmark for calculating potential gains or losses upon settlement.

### **Invest**

To **invest** in a NoLiquidation Perp means paying a fixed premium cost (e.g., 10 USDT) to gain exposure to the price movements of the underlying asset (e.g., BTC).

* Unlike spot or perpetual trading, there is no margin requirement, making investment risk fixed and predictable.

### **Profit**

**Profit** refers to the financial gain a user earns from a trade. For NoLiquidation Perp, this is determined at settlement by the formula:

**Profit = (Settlement Price - Entry Price) × Direction × Quantity**

Here:

* Direction is **1** for Call and **1** for Put.
* Settlement price is the underlying asset's index price at the time of manual or automatic contract settlement.

### **ROI (Return on Investment)**

**ROI** measures the return a user achieves relative to their initial investment. For Profit Swap Contracts, it often reflects the leverage effect, as users can gain significant returns by investing only a small premium.

* **Formula**: ROI = (Profit / Premium Paid) × 100%