# Key Concepts Plain-English definitions for every term you will encounter on Zirodelta. No Wikipedia abstractions. Each definition answers: what is it, and why does it matter to you as a trader or depositor. *** ## Funding Rate A periodic cash payment that moves between the long and short sides of a perpetual futures market. When the perpetual contract trades above the spot price of an asset, longs pay shorts. When it trades below spot, shorts pay longs. The payment is automatic Hyperliquid deducts it from margin and credits it to the other side every settlement period. You do not need to do anything. You just need to be on the right side. **Why it matters:** The funding rate is a yield stream. If you hold a short perp and funding is positive (longs paying shorts), you earn that rate every hour. Zirodelta's entire product stack exists to help you capture this yield efficiently and safely. **On Hyperliquid:** Settlement happens every **1 hour**: 24 times per day. On Binance, Bybit, and OKX, it happens every 8 hours (3 times per day). This difference affects compounding, signal freshness, and strategy timing. See [Funding Rates on Hyperliquid](/hyperliquid/funding-rates.md). *** ## Farm Score™ Zirodelta's proprietary market opportunity score. A single number, 0–100, per market, updated continuously from live data. **What the score means:** * **Above 70**: Shorts are currently earning funding on this market. The signal is strong enough to act on. * **Below 30**: Longs are currently earning funding. * **30–70**: Contested or low-conviction signal. Lower priority. **How it is computed:** The 9-factor Intelee microstructure model. Inputs include CVD (cumulative volume delta), long/short ratio, OI delta, the divergence between the predicted next funding rate and the current rate, and related microstructure signals. The model runs on ClickHouse data with 10B+ rows and <10ms query latency. Farm Score is not a prediction of price direction. It is a real-time assessment of who is paying whom in the funding market. And whether the conditions that generate that payment are stable or deteriorating. *** ## Delta-Neutral A position where the net price exposure is zero. Your portfolio's value does not change when the price of the underlying asset moves up or down. In Zirodelta's context: you hold a **short perp** and a **long spot** position in the same asset, for the same notional size. If the price rises by 10%, your short perp loses 10% and your long spot gains 10%. They cancel. Net delta = zero. **Why you want this:** The only income left when price risk is removed is the funding rate payment. Every hour, longs pay shorts (in a positive funding environment). You receive that payment with no exposure to whether the price goes up or down. This is what makes funding rate farming qualitatively different from directional trading. The question is not "will this asset go up?". It is "is this funding rate going to persist long enough to be worth holding?" *** ## CVD (Cumulative Volume Delta) The running total of buy-volume minus sell-volume over a period. Positive CVD means buyers have been more aggressive than sellers. Negative CVD means sellers have dominated. **How to read it:** CVD does not tell you where price is going. It tells you who is under pressure. High positive CVD in a market with a Farm Score above 70 means a crowded long position is paying shorts handsomely. The funding signal is backed by real positioning data. On Zirodelta, the CVD chart is displayed alongside the funding rate chart for every market. Use it to confirm that the Farm Score signal has a structural basis, not just a rate spike from a single large move. *** ## OI (Open Interest) and OI Delta **Open Interest** is the total notional value of all open perpetual contracts in a market. It measures the total size of all active bets, not trading volume. **OI Delta** is the change in OI over time. Rising OI means new positions are entering. Falling OI means positions are being closed. The market is deleveraging. **How to interpret it:** * OI rising + price rising + high Farm Score → longs are piling in and paying more funding. Strong short farming opportunity. * OI falling + Farm Score retreating → the crowded side is unwinding. Consider closing or reducing your farming position. * OI rising + price falling → shorts are pressing. Relevant for negative funding environments. Zirodelta's OI Delta chart shows the rate of change, not just the level. A sharp OI spike is worth watching. *** ## Agent Wallet A Hyperliquid-native permission system that allows a third-party address to sign orders on your behalf. Without ever touching your funds. You sign the `approveAgent` transaction once. This tells Hyperliquid L1: "this address (Zirodelta's backend) is allowed to submit orders from my account." After that, Zirodelta's automation layer can open and close positions on your behalf 24/7. **Critical detail:** The agent wallet has **signing authority only**. It cannot withdraw funds, transfer tokens, or take any action that moves your collateral away from your address. Your balance stays in your Hyperliquid account. Zirodelta's backend can only place and cancel orders. To revoke the agent at any time, you sign `revokeAgent`. A single transaction. *** ## Builder Fee A fee mechanism on Hyperliquid that allows third-party interfaces to collect a small fee on each order they route through the protocol. Zirodelta collects: * **5 bps (0.05%)** on every filled perp order * **50 bps (0.5%)** on every filled spot order These fees are in addition to Hyperliquid's own taker fees. You sign `approveBuilderFee` once per market type to authorize this. Like the agent wallet, this approval can be revoked. Builder fees are how Zirodelta earns revenue without a token or treasury. Zirodelta earns only when you trade. *** ## CoreWriter Precompile A Hyperliquid-specific EVM extension that allows smart contracts deployed on HyperEVM to call Hyperliquid L1 exchange actions directly from Solidity. Normally, a smart contract on an EVM chain can only interact with other contracts on that chain. CoreWriter breaks this barrier: a contract deployed on HyperEVM can call Hyperliquid's native borrow/lend protocol, place spot orders, and transfer tokens. As a direct L1 call, with no bridge, no wrapped token, and no cross-chain message passing. This is the architectural foundation for the Zirodelta Lending Vault. Without CoreWriter, a smart contract on HyperEVM would have no way to supply assets into Hyperliquid's native lending reserve. CoreWriter is unique to Hyperliquid. It does not exist on any other chain. *** ## HyperEVM The EVM-compatible execution layer of Hyperliquid. Smart contracts deployed on HyperEVM have access to standard EVM tooling (Solidity, Foundry, ethers.js) and. Through CoreWriter. Direct access to Hyperliquid L1 state. The Zirodelta Lending Vault is an ERC-4626 smart contract on HyperEVM. Deposits into the vault flow directly into Hyperliquid's native borrow/lend reserve via CoreWriter. *** ## ERC-4626 A standard interface for tokenized yield-bearing vaults on EVM chains. It defines a consistent API for depositing assets, tracking shares, and withdrawing. So any tool that understands ERC-4626 can interact with the vault without custom integration. Zirodelta's Lending Vault implements ERC-4626. Depositors receive vault shares proportional to their deposit. As the vault earns yield, each share becomes worth more of the underlying asset. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.zirodelta.com/getting-started/key-concepts.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.