> For the complete documentation index, see [llms.txt](https://gotts.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://gotts.gitbook.io/docs/reference/glossary.md).

# Glossary

Key terminology used throughout the Gotts documentation and codebase.

| Term            | Definition                                                                                                                                                                                                                        |
| --------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| MCP             | Model Context Protocol. Open standard for connecting AI models to external tools and data sources. Gotts Safe exposes 154 tools via MCP.                                                                                          |
| V2              | Uniswap V2. Constant product AMM (x\*y=k) with pair-based pools.                                                                                                                                                                  |
| V3              | Uniswap V3. Concentrated liquidity with tick-based positions. Currently the most liquid version.                                                                                                                                  |
| V4              | Uniswap V4. Hook-based pool customization with singleton architecture. Enables vault share pools with NAV-aware pricing.                                                                                                          |
| UniswapX        | Dutch auction order system with off-chain fillers. Provides MEV protection for swaps.                                                                                                                                             |
| Permit2         | Uniswap's universal token approval contract (`0x000000000022D473030F116dDEE9F6B43aC78BA3`). Replaces per-contract approvals with a single approval + signature-based permits.                                                     |
| ERC-8004        | Agent identity standard (mainnet Jan 29, 2026). Provides on-chain identity and reputation for autonomous agents. Co-authored by MetaMask and Google.                                                                              |
| ERC-4626        | Tokenized vault standard. Defines a standard API for yield-bearing vaults with deposit/withdraw/redeem functions and share accounting.                                                                                            |
| am-AMM          | Auction-Managed AMM. Harberger lease auction mechanism where vault management rights are continuously auctioned. The winning manager pays rent to depositors as real yield.                                                       |
| CCA             | Continuous Clearing Auction. Uniswap's token launch mechanism for fair price discovery.                                                                                                                                           |
| Hook            | A V4 customization contract deployed at a specific address (mined via HookMiner). Hooks intercept pool lifecycle events (swap, modify position, donate) to add custom logic.                                                      |
| Tick            | Price boundary in V3/V4 concentrated liquidity. Liquidity providers set a lower and upper tick to define their position's active price range.                                                                                     |
| TVL             | Total Value Locked. The aggregate dollar value of assets deposited in a protocol, pool, or vault.                                                                                                                                 |
| Slippage        | The difference between expected and actual execution price of a trade, caused by price movement or insufficient liquidity.                                                                                                        |
| IL              | Impermanent Loss. The opportunity cost of providing liquidity versus simply holding the assets. Becomes permanent when the LP exits the position.                                                                                 |
| LVR             | Loss-Versus-Rebalancing. A measure of the cost imposed on LPs by arbitrageurs who trade against stale AMM prices. Approximately 2.5x lower on Base than Ethereum mainnet due to faster block times (sqrt(12/2) = sqrt(6) ≈ 2.45). |
| TEE             | Trusted Execution Environment. Hardware-isolated compute environment (e.g., Intel SGX, AWS Nitro). Used by Privy for key management and signing policy enforcement.                                                               |
| Circuit Breaker | Automatic safety mechanism that halts operations when anomalous conditions are detected. Used in vaults (NAV deviation), protocol fees, and withdrawal monitoring.                                                                |
| TokenJar        | Uniswap protocol fee collection contract (`0xf38521f130fcCF29dB1961597bc5d2B60F995f85`). Accumulates protocol fees for governance distribution.                                                                                   |
| Firepit         | UNI token burn contract (`0x0D5Cd355e2aBEB8fb1552F56c965B867346d6721`). Permanently removes UNI from circulation.                                                                                                                 |
| PolicyCage      | On-chain hard boundaries for AI agent strategy. Defines approved asset lists, max position sizes, strategy whitelists, drawdown tolerance, and rebalance frequency limits. Cannot be bypassed by prompt injection.                |
| Gotts Safe      | The unified Uniswap MCP server (`@gotts.ai/safe`). Provides 154 tools across 30 categories for data, trading, liquidity, vault operations, identity, and safety.                                                                  |
| Gotts Vaults    | Permissionless vault factory (`@gotts.ai/vault`). Agents deploy ERC-4626 vaults gated by ERC-8004 identity, with auto-created V4 share pools and am-AMM management auctions.                                                      |
| Tool Profile    | Configuration that controls which MCP tools are loaded by Gotts Safe. Profiles include `data`, `trader`, `lp`, `vault`, `full`, and others. Set via `TOOL_PROFILE` env var.                                                       |
| Agent Proxy     | Time-delayed execution proxy (`@gotts.ai/agent-proxy`). All write operations pass through an announce-wait-execute lifecycle with a mandatory cancellation window.                                                                |
| MonitorBot      | Standalone monitoring process that watches all announced Agent Proxy transactions and can veto suspicious activity during the delay window.                                                                                       |
| CancelAuthority | Address or contract authorized to cancel announced transactions during the Agent Proxy delay window. Typically held by the MonitorBot or a multisig.                                                                              |
| NAVAwareHook    | V4 hook that prices vault shares at Net Asset Value. Enables depositors to exit a vault by swapping shares on the auto-created V4 pool instead of waiting in a withdrawal queue.                                                  |
| Delegation DAG  | Directed Acyclic Graph of agent-to-agent delegation. Agents can delegate to other agents but cycles are prohibited (A delegates to B delegates to A is invalid). Terminal agents (safety-guardian, risk-assessor) never delegate. |
| Session Key     | ERC-7715 scoped key that grants limited, time-bound permissions to an agent. Allows agents to execute specific operations without full wallet access.                                                                             |
