Plain-English definition
The off-chain gap is where custody, banking, legal rights, fund documents, transfer agents, NAV, side agreements, or redemption queues sit outside the ledger.
The gap is not automatically bad. It is just the boundary of what the chain can prove. Bathymark keeps that boundary visible so a token balance does not become fake certainty.
Why it matters
Off-Chain Gap matters because crypto markets can look precise while still being shallow, crowded, or poorly sourced. A useful read is not just the number. It is the number, the size behind it, the context around it, and the part it cannot explain.
Simple example
A simple Off-Chain Gap example is a reader comparing two venues with the same headline price but different depth. The deeper venue can absorb more capital before the trade, peg, or yield reading starts to move against the user.
How Bathymark uses this term
Bathymark uses Off-Chain Gap to translate open market data into live liquidity readings. When the term touches a live page, the reading links back to the relevant chain, protocol, stablecoin, DEX, perps, or Signal so the source remains checkable.
Common mistake
The common mistake is treating Off-Chain Gap as a complete signal by itself. Bathymark treats it as one instrument: useful when read beside liquidity, source, size, and what the number cannot prove.