Lightning Address
A Lightning Address is a human-readable identifier, usually formatted like an email address, that lets a compatible Bitcoin Lightning wallet request payment…
Glossary terms starting with L
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Lightning Commitment Transaction
A Lightning commitment transaction is a pre-signed Bitcoin transaction representing one party's enforceable view of a payment channel's current balance. When a…
Lightning Invoice
A Lightning invoice is a signed, encoded payment request used to receive Bitcoin through the Lightning Network. It normally specifies an amount…
Lightning Network
The Lightning Network is a Bitcoin payment-channel network designed for faster, frequent payments without recording each individual transfer directly as a Bitcoin…
Limit Order
Limit Order is an instruction to buy no higher than a specified price or sell no lower than a specified price, subject…
Limit Order Book
Limit Order Book is the organized record of active buy and sell limit orders, usually grouped and prioritized by price and time.…
Limit-on-Close Order
Limit-on-Close Order is an instruction to participate in a market’s closing process only at the specified limit price or better. It combines…
Limit-on-Open Order
Limit-on-Open Order is an instruction to participate in a market’s opening process only at the specified limit price or better. It combines…
LINK Token
LINK is the native ecosystem and payment token of Chainlink, used within oracle, cross-chain, automation, staking, and service-provider economics under current network…
Liquid Restaking Token (LRT)
A Liquid Restaking Token is a transferable token representing assets deposited into a restaking strategy that supports additional networks, services, or validation…
Liquid Staking Token (LST)
A Liquid Staking Token is a transferable token representing cryptocurrency deposited into a proof-of-stake validator or staking protocol. The LST reflects principal…
Liquidation Risk
Liquidation risk is the possibility that collateral or positions are forcibly closed at unfavorable prices after required financial thresholds are breached. Decision-makers…
Liquidity
Liquidity is the ability to buy, sell, convert, transfer, or fund an obligation quickly without excessive cost or price impact. Useful assessment…
Liquidity Aggregation
Liquidity Aggregation is the process of combining prices, depth, balances, or executable access from multiple liquidity sources into a coordinated view or…
Liquidity Buffer
A liquidity buffer is a reserve of spendable assets held to absorb payment outflows, delayed inflows or sudden demand without interrupting promised…
Liquidity Coverage
Liquidity Coverage is the extent to which available liquid resources are sufficient to meet expected and stressed cash or asset outflows over…
Liquidity Depth
Liquidity Depth is the amount of executable buying or selling interest available across price levels before a trade causes a specified degree…
Liquidity Forecasting
Liquidity forecasting estimates how much usable money or crypto a business will need and when, given expected customer payments, merchant withdrawals, refunds…
Liquidity Fragmentation
Liquidity fragmentation means assets or trading interest are split across venues, wallets, networks or custodians, reducing the amount readily available at any…
Liquidity Management
Liquidity Management is the coordinated process of ensuring that sufficient funds and executable capacity are available in the right asset, location, and…
Liquidity Mismatch
Liquidity Mismatch is a misalignment between the timing, amount, currency, asset, location, or liquidity characteristics of resources and the obligations they are…
Liquidity Monitoring
Liquidity Monitoring is the continuous or periodic observation of balances, flows, obligations, market capacity, access conditions, and risk indicators that affect liquidity.
Liquidity Planning
Liquidity Planning is the forward-looking process of determining how much liquidity will be needed, where it should be held, and which sources…
Liquidity Policy
Liquidity Policy is a formal set of principles, limits, roles, eligible resources, measurement rules, and escalation requirements governing how an organization manages…