Glossary

Active positions

Active Positions = Engageable Offers + Engaged Offers

Approval transaction

For security measures, users must first grant approval permission for dApp Toolkit to withdraw a defined quantity of ERC-20 tokens from the user’s wallet. The Ethereum network will then verify the token transfer limit for each deposit transaction. Upon successful verification, users will be granted with <=X amount of tokens transfer limit per transaction. Users can then deposit the tokens into the Instrument Account. If the next deposit amount exceeds X, the Ethereum network would require another approval for the increased amount

Borrowing instrument

Borrowing instrument is a form of loan where Borrowers create borrowing offers by depositing collateral initially. Borrowing offer provides flexibility for Borrowers to define the specific borrowing terms such as: principal amount, interest rate, collateral ratio and tenor

Canceled

Offer canceled by Maker

Collateral

A Borrower's pledge of assets to the Lender in order to secure the principal

Collateral ratio

Represents the required ratio between the value of pledged assets relative to the value of principal assets

Completed

Offer has completed its life cycle

Engageable

Offer available for engagement

Engaged

Offer engaged by Takers

Expired

Offer expired without any Takers

FSP

Financial Service Provider, underwriters of financial instruments and organizers of exchange markets

Inactive positions

Inactive Positions = Expired Offers + Canceled Offers + Completed Offers

Input token

The asset which the Maker is using for exchange

Instrument account balance

Represents the available balance for offer creation or offer engagement in a specific instrument market

Interest rate

In a lending position, interest rate is the borrowing cost charged by the Lender to the Borrower. In a borrowing position, interest rate is the borrowing cost paid by the Borrower to the Lender

Lending instrument

Lending instrument is a form of loan where Lenders create lending offers by depositing principal initially. Lending offer provides flexibility for Lenders to define the specific lending terms such as: principal amount, interest rate, collateral ratio and tenor

Liquidated

Offer liquidated by System

Liquidation alert

System will trigger a liquidation alert when the collateral ratio falls by 15% relative to the initial collateral ratio. Borrower is required to deposit additional collateral assets to increase the ratio back to its initial level to avoid liquidation

Liquidation event

A liquidation event will be automatically trigged when the collateral ratio falls by 20% or more relative to the initial collateral ratio. The system will automatically close out the loan position. Borrowers can no longer repay or deposit additional collateral assets to reactivate the loan position

Liquidation levels

Level 1: the collateral ratio falls by 15% relative to the initial collateral ratio Level 2: the collateral ratio falls by 20% or more relative to the initial collateral ratio

Maker

Creators of financial instrument offers. Also referred to as Liquidity Providers

Output token

The asset which the Maker is looking to exchange for

Overall account balance

Overall account balance is the aggregated balance across all instrument markets.

Overall Account Balance = Savings A/C Balance + Lending A/C Balance + Borrowing A/C Balance + Swap A/C Balance

Payables

Represents a user's obligations to repay. Payables balance is the sum of assets owed by the user.

Position balance

Represents the aggregated assets escrowed in all active positions across instrument markets Position Balance = Receivables - Payables

Principal

In a lending position, principal is the asset which the Lender wishes to lend out. In a borrowing position, principal is the asset which the Borrower wishes to borrow

Receivables

Represents the assets owed to the user. Receivable balance is the sum of assets supplied by the user that is currently locked in engaged and engageable offers

Swap instrument

Swap instrument is a form of spot exchange function between two tokens specified by the Maker. Maker of a swap offer determines the exchange rate, exchange tokens and offer valid period

Taker

Engagers of financial instrument offers currently available on the market

Tenor

The length of time until a loan is due

Valid period

The length of time until the the swap offer expires