| Actionable Yield | Estimated APY after accounting for margin impact of a deposit. What you will actually earn, not what is currently displayed. |
| Adaptive Curve IRM | Interest rate model that automatically adjusts its target rate based on market behavior over time. |
| APY | Annual Percentage Yield. The annualized return on supplied assets, including compounding. |
| Block-Level Indexing | Computing protocol state at every block rather than only when transactions occur. |
| Borrow APY | The annualized rate borrowers pay on borrowed assets. |
| Collateral | Asset locked by borrowers to secure a loan. |
| Curator | Entity managing a vault’s allocation strategy and risk parameters. |
| Deposit Queue | The order in which a vault allocates new deposits across its underlying markets. |
| EOA | Externally Owned Account. A standard wallet controlled by a private key. |
| Event-Based Indexing | Updating state only when on-chain transactions occur. Misses continuous interest accrual between events. |
| IRM | Interest Rate Model. Algorithm that determines borrow and supply rates based on utilization. |
| Liquidation | Process where a borrower’s collateral is seized when their position exceeds LLTV threshold. |
| LLTV | Liquidation Loan-to-Value. The threshold at which a borrowing position becomes liquidatable. |
| Loan Asset | Asset that lenders supply and borrowers receive. |
| Main Wallet | User’s externally owned account (EOA) that controls the smart account and receives withdrawals. |
| Margin Impact | The change in APY caused by a deposit or withdrawal affecting utilization. |
| Market | An isolated lending pool defined by a collateral/loan asset pair and risk parameters. |
| Market Allocations | Distribution of a vault’s deposits across its underlying markets. |
| Oracle | Price feed used to value collateral and determine liquidation eligibility. |
| Policies | On-chain rules defining which vaults and assets the Router can access for a user. |
| Policy Upgrade | Process of updating smart account permissions to access new assets or vaults. Requires user signature. |
| PPS | Price Per Share. The value of one vault share in terms of the underlying asset. Total assets divided by total shares. |
| Rate At Target | The interest rate at target utilization (typically 90%). The anchor point for IRM calculations. |
| Rebalancing | Moving capital from one vault to another when a better yield opportunity exists. |
| Routing Signal | Decision output from the Router indicating deposit, rebalance, or hold. |
| Shares | Tokens representing proportional ownership in a vault or market position. |
| Smart Account | User-owned contract that holds routed funds and executes transactions. Also called sub-account. |
| Sub-account | See Smart Account. |
| Supply APY | The annualized rate lenders earn on supplied assets. |
| Supply Caps | Maximum deposits a vault will accept per market. |
| Target Utilization | The utilization rate an IRM optimizes toward, typically 80-90%. |
| Total Assets | The total value a vault holds across all its market positions. |
| Total Shares | Outstanding vault shares representing all depositor claims. |
| Utilization | Ratio of borrowed assets to supplied assets in a market. |
| Vault | Aggregation layer that allocates deposits across multiple markets according to a curator’s strategy. |
| Withdraw Queue | The order in which a vault sources funds for withdrawals from its underlying markets. |