Appendix

Key Formulas & Glossary

Key Formulas

These formulas define Trove’s core market mechanics:

Oracle Price

Oracle = (Mark + Validator + EMA) / 3

• Mark

  • The last traded price on Trove (real-time market sentiment).

• Validator

  • Aggregated prices from 25+ verified sources (Collector, Courtyard, Phygitals, TCGPlayer, etc.).

• EMA

  • Trove’s HyperPS exponential moving average model (smooths volatility).

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Funding Direction

If Mark > Oracle → Longs pay Shorts
If Mark < Oracle → Shorts pay Longs

Funding aligns mark and oracle prices by creating incentives for traders to take the cheaper side of the market.

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Glossary

Term	Definition
Mark	Live Trove trading price (reflects current market sentiment).
Oracle	Reference price blending on-chain and external data.
Funding	Periodic payments between longs and shorts that align Mark with Oracle.
Vault	Liquidity pool that supports two-sided markets and manages exposure.
Validator	Verified price sources from external marketplaces.
EMA (HyperPS)	Proprietary smoothing model for short-term price trends.
OI Cap	Open-interest limit per market to control total exposure.
TWAP	Time-weighted average price used to compute fair funding.