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