# Glossary

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**Note**: The examples in this document use **BNB Chain** as a reference, but they apply equally to all **EVM-compatible chains**, including Base, Ethereum Mainnet, X Layer, Plasma, and other Layer 2 solutions.

The underlying logic and interaction methods across these networks are consistent. You simply need to substitute the **network configuration** and **native token** corresponding to the chain you are using to apply the concepts and definitions explained in this guide.
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### 🎯 Basic Concepts

| Term                           | Description                                                                                                                  |
| ------------------------------ | ---------------------------------------------------------------------------------------------------------------------------- |
| Transaction (Tx)               | An on-chain state-changing operation (transfer / contract call).                                                             |
| **Transaction hash (Tx Hash)** | **The unique identifier of a transaction, used to query its status.**                                                        |
| Nonce                          | The count of transactions an account has sent; an unconfirmed transaction can be replaced using the same Nonce + higher Gas. |
| Gas / Gas Price / Gas Limit    | Execution fee / price cap; common unit is Gwei.                                                                              |
| BNB units                      | 1 BNB = 10^9 Gwei = 10^18 Wei.                                                                                               |
| RPC node                       | The entry point for interacting with the chain (HTTP/WS).                                                                    |
| Confirmations                  | The number of subsequently added blocks; the more confirmations, the safer.                                                  |
| EOA / Contract account         | Externally Owned Accounts are controlled by private keys; contract accounts are controlled by code.                          |

### 🔔 Tokens and Standards

| Term                 | Description                                                                                                                            |
| -------------------- | -------------------------------------------------------------------------------------------------------------------------------------- |
| **BEP-20**           | **BSC fungible token standard (similar to ERC-20).**                                                                                   |
| **BEP-721 / 1155**   | **NFT and hybrid standards (similar to ERC-721/1155).**                                                                                |
| BEP-2 (Beacon Chain) | Token standard of BNB Beacon Chain (non-EVM), not compatible with BEP-20 and requires bridging to convert.                             |
| WBNB (Wrapped BNB)   | Wraps native BNB into a BEP-20 token for easier contract interaction.                                                                  |
| Decimals             | Token precision, commonly 18.                                                                                                          |
| Mint / Burn          | Increase / destroy token supply.                                                                                                       |
| BEP-95 (fee burn)    | The network layer burns part of the Gas fees in real time, creating a deflationary mechanism for BNB (independent of token contracts). |
| Tokenomics           | Token economic design such as tax rates, allocation, unlocks, etc.                                                                     |

### 💹 Transactions & Approvals

| Term                                            | Description                                                                    |
| ----------------------------------------------- | ------------------------------------------------------------------------------ |
| Approve / Allowance (authorization / allowance) | Allows a contract to spend your tokens on your behalf; can be revoked anytime. |
| Permit (EIP-2612)                               | Authorize with a signature, saving one on-chain approve.                       |
| Slippage                                        | The tolerable range of price movement.                                         |
| Replace transaction (Speed Up / Cancel)         | Replace an unconfirmed transaction by using higher Gas and the same Nonce.     |
| Revert                                          | Execution fails but still consumes Gas.                                        |
| Batch / Multicall                               | Execute multiple operations at once.                                           |

### 🔄 DEX and Liquidity (AMM)

| Term                     | Description                                                                                                                           |
| ------------------------ | ------------------------------------------------------------------------------------------------------------------------------------- |
| AMM                      | Automated market-making model (e.g., constant product), no order book required.                                                       |
| Liquidity pool (LP Pool) | Two assets are injected in proportion for use in trading.                                                                             |
| LP token                 | Represents your share of the pool and right to fee earnings.                                                                          |
| Router / Factory         | The swap entry and the contract that creates trading pairs.                                                                           |
| Multi-hop                | Routing through multiple pools to get a better price.                                                                                 |
| Price impact             | The immediate impact your order size has on the pool price; the larger the impact, the more the execution deviates from expectations. |
| Impermanent loss (IL)    | Potential loss from market making compared to holding a single asset.                                                                 |

### 🛡️ Security Must-reads

| Term                                                | Description                                                                                                                                                                                      |
| --------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| **Mnemonic / Private key**                          | **The root credential for assets; never screenshot / paste / upload it.**                                                                                                                        |
| **Unlimited approval risk**                         | **Approving the maximum may be stolen; it's recommended to approve limited amounts and revoke periodically.**                                                                                    |
| Max transaction / Wallet limits (MaxTx / MaxWallet) | Some tokens set limits per transaction and per-address holdings; exceeding limits can cause failures or inability to sell. Always confirm current values against limits before placing an order. |
| Rug Pull                                            | Withdrawing LP or minting and selling causing a crash.                                                                                                                                           |
| Blacklist / Tax rate / Trading switch               | Admins can change these — check contract permissions.                                                                                                                                            |
| Upgradable proxy                                    | Logic contracts can be swapped; require multisig + timelock.                                                                                                                                     |
| Fake contract addresses                             | Only trust authoritative sources and official announcements.                                                                                                                                     |
| MEV / Sandwich                                      | Being sandwiched due to excessive slippage.                                                                                                                                                      |
| Airdrop / Dusting attack                            | Small unknown token transfers try to induce you to interact or approve; do not interact with or approve tokens from unknown sources.                                                             |

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**Minimum Self-Check：**

* Is the contract verified?
* Can permissions change tax / blacklist / pause / mint?
* Is the LP locked?
* Is there multisig + timelock?
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