Glossary

Two lines per term, in the order a new reader meets them.

Settlement — the moment both legs of a trade move, or neither does. The only thing BATHRON's consensus performs. → Settlement guarantees

Market / pair — X/M1: exists when someone brings inventory and publishes quotes; nobody approves it and nobody can revoke it. → How a market appears

M1 — the settlement unit (numéraire) of the network; M0 vaulted 1:1. Held by market builders and providers as working capital; not a coin sold to end users. → The settlement unit

M0 — the base accounting unit, created only when bitcoin has been provably destroyed and the proof verified in consensus (invariant A5). → From destroyed BTC to M1

Burn / destruction — sending bitcoin to a provably unspendable output on Bitcoin. One-way; the BTC is not held for redemption. → Bitcoin is the final asset

Numéraire — a common unit every pair settles through, so N assets need N pairs instead of N².

Operator (Settlement Operator) — a consensus identity collateralised with M0: produces blocks, signs finality, publishes facts about itself. One operator, one vote. Called masternode in the RPC and source. → Roles

Settlement Provider (SP) — umbrella term for the commercial participants: Clearing Providers and Liquidity Providers. Participants, never administrators.

Clearing Provider (CP) — quotes a client, orchestrates the legs, enforces deadlines, offers an SLA; paid by explicit fees.

Liquidity Provider (LP) — holds inventory in a pair and prices it; paid by the spread; bears capital and market risk.

Quote — a signed off-chain message: pair, bid, ask, size, expiry. Never seen by consensus. → Quotes live off-chain

Covenant — a script constraining how value may move (a forced destination, a timeout, a condition). Not a smart contract in the EVM sense. → The infrastructure

HTLC — hashed timelocked contract: pays on a revealed secret, refunds after a deadline. Two of them, one per chain, keyed to the same secret, form an atomic pair. → Native BTC ⇄ M1

Bitcoin facts / SPV — Bitcoin block headers carried and verified inside BATHRON's consensus; a Merkle proof then proves a Bitcoin transaction is confirmed, for every node, without an oracle. → Bitcoin facts inside consensus

TX_CONFIRMED — the script check "this Bitcoin payment is confirmed under enough work"; the engine under DvP and escrow.

CTV, CSFS, CSV/CLTV, OP_CAT, introspection — the covenant opcodes: forced template, oracle signature, timelocks, concatenation, reading the spending transaction. → Script & opcodes

Finality — a block is irreversible after one round of operator signatures (~1 minute), by an ECVRF-drawn committee with threshold ⌈2/3·min(E,N)⌉; finality overrides the longest chain. → Production and finality

Invariants A5 / A6 — A5: M0 total equals BTC provably destroyed. A6: vaulted M0 equals M1 supply. Enforced by every node; a finality quorum cannot break them. → Accounting invariants

Consensus freeze — the rule that any addition to consensus must prove it enables something impossible to build cleanly above; all future value is built above. → Why the consensus is frozen

Open admission — the state in which anyone may register as an operator. Not yet reached: the current operator set is project-run. → Status & claims