fxToken: fungible instrument representing a debt denominated in the specific currency of that fxToken.

collateral: any asset used to secure the minting of an fxToken.

minting: creation of a representative fxToken and associated debt.

c-ratio =Collateral Ratio.

= total value of lodged collateral as a % of fxToken debt

= collateral value /fxToken loan amount = 1/LVR

Loan to Value Ratio (LVR) = fxToken loan as a % of collateral value = fxToken loan/collateral value (also called ‘Mint Ratio’ MR) burning: destruction of fxTokens representing partial of full repayment of the collateralised loan collateral metrics: the risk metrics specific to collateral types. assigned to manage collateral specific lending risk and requirements

impermanent loss: is a temporary loss of funds that can occur when providing liquidity to an automated market maker (AMM) platform. It is often explained as the difference between holding an asset versus providing liquidity in that asset. vaults: representation of locked collateral that fxToken loans are issued against. vaults contain 1 to n collateral types.

vault ratios: a combination of the individual collateral metrics for assets deposited to a vault. liquidation: sale of part or all vault collateral to restore vault ratios to minimum acceptable limits. liquidation trigger: the c-Ratio (max LVR) at which the collateral liquidation process begins. liquidation fee: % fee charged to a vault liquidate part or all of lodged collateral. stability fee: % interest rate applied to asset used as collateral for minting of fxTokens.

utilisation rate: measures how much of the asset is being used by traders. it is worked out = assets borrowed / total assets in pool.

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