> ## Documentation Index
> Fetch the complete documentation index at: https://docs.rialto.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Key Concepts and Glossary

> Definitions of the core terms used throughout the Rialto documentation.

## Glossary

| Term              | Definition                                                                                                               |
| ----------------- | ------------------------------------------------------------------------------------------------------------------------ |
| propAMM           | An onchain market maker that prices trades from its own logic and inventory and updates its quotes continuously.         |
| Active liquidity  | Liquidity whose price is refreshed continuously by an operator, independent of trade activity.                           |
| Passive liquidity | Liquidity that prices from a fixed formula and only moves as the pool is traded against, such as a constant-product DEX. |
| Liquidity source  | Any venue Rialto can quote and settle against, including propAMMs and conventional DEX pools.                            |
| Quote             | A live price for a specific order size, returned at request time and valid for a brief window.                           |
| Route             | The source or set of sources selected to fill an order.                                                                  |
| Leg               | A single source's portion of a route when an order is split across more than one source.                                 |
| Best execution    | Selecting the route that returns the most output net of network costs.                                                   |
| Slippage          | The difference between the quoted output and the minimum output an order will accept before it reverts.                  |
| Reference price   | The external price a propAMM anchors its quotes to.                                                                      |
| Inventory         | The reserves a propAMM holds and fills trades from.                                                                      |
| Settlement        | The onchain execution of a selected route in a single atomic transaction.                                                |
| Taker             | The party submitting an order to be filled.                                                                              |
| Gasless execution | An execution option where the user signs the order and a relayer broadcasts the transaction and pays the network fee.    |
| Integrator        | A wallet, frontend, or other application that routes orders through Rialto.                                              |