> For the complete documentation index, see [llms.txt](https://docs.trilobyte.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.trilobyte.finance/resources/glossary.md).

# Glossary

| Term                     | Definition                                                                                                                                             |
| ------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------ |
| **Amortisation**         | The process of reducing outstanding principal with each payment. Each EMI contains an interest component and a principal component.                    |
| **Allowlist**            | A list of approved investor addresses for permissioned vaults. Managed by the Pool Manager.                                                            |
| **Basis Points (bps)**   | A unit of measurement: 1 bps = 0.01%. An interest rate of 1000 bps = 10%.                                                                              |
| **Borrower**             | A business that receives a loan through a Trilobyte vault and repays through incoming revenue.                                                         |
| **Cash Pool**            | The portion of each repayment allocated to the borrower (based on `100 - split_ratio`). Withdrawable by the borrower.                                  |
| **Collateral**           | Tokens staked by Pool Managers as guarantee. Locked when a vault is created, released on repayment, slashed on default.                                |
| **Credit Limit**         | The maximum total outstanding principal a Pool Manager can have across all active vaults. Set by the Operations Admin.                                 |
| **Debt Token (tVLT)**    | Non-transferable SEP-41 fungible token minted 1:1 with investor deposits. Represents the investor's share of the vault.                                |
| **Default**              | Triggered when a borrower fails to repay within the grace period. Results in collateral slashing and delinquency flagging.                             |
| **Delinquency**          | A flag applied to Pool Managers whose vaults have defaulted. Blocks new vault creation until cleared by Operations Admin.                              |
| **EMI**                  | Equated Monthly Instalment — the fixed payment amount covering principal and interest, calculated using standard amortisation.                         |
| **EMI Pool**             | The portion of each repayment allocated to investors (based on `split_ratio`). Claimable pro-rata by investors.                                        |
| **Factory**              | Smart contract that deploys new vault instances. Validates parameters and manager eligibility before deployment.                                       |
| **Finalized**            | Terminal vault phase. All funds distributed or refunded. No further actions possible.                                                                  |
| **Globals**              | Smart contract managing protocol-wide settings, roles, fees, asset whitelist, and pool manager collateral.                                             |
| **Governor**             | The protocol administrator. In production, governance actions are routed through the Timelock for delay enforcement.                                   |
| **Grace Period**         | Configurable window (default 30 days) after a missed payment before default can be triggered.                                                          |
| **Investor**             | An address that deposits funds into a vault and earns yield from borrower repayments.                                                                  |
| **Late Fee**             | An 18% p.a. penalty applied by the Pool Manager when a payment is overdue.                                                                             |
| **Operations Admin**     | Protocol role responsible for approving/removing pool managers, setting credit limits, and clearing delinquency.                                       |
| **Permissioned Vault**   | A vault where only allowlisted addresses can deposit. Access controlled by the Pool Manager.                                                           |
| **Permissionless Vault** | A vault where any address can deposit.                                                                                                                 |
| **Pool Manager**         | A professional underwriter who evaluates borrowers, structures loans, stakes collateral, and manages vaults.                                           |
| **Principal**            | The total loan amount requested by the borrower and funded by investors.                                                                               |
| **Protocol Fee**         | A 0.5% fee sent to the protocol treasury — taken from investor deposits, and on repayments from the borrower's cash share only (never investor yield). |
| **Renegotiation**        | Process where the Pool Manager proposes new loan terms (rate + term). EMI is recalculated on outstanding principal.                                    |
| **Security Admin**       | Protocol role with emergency pause/unpause powers.                                                                                                     |
| **SEP-41**               | Stellar Ecosystem Proposal 41 — the fungible token standard on Stellar/Soroban.                                                                        |
| **Soroban**              | Stellar's smart contract platform, providing a Rust-based execution environment.                                                                       |
| **Split Ratio**          | The percentage of each repayment routed to the EMI pool (investor yield). The remainder goes to the cash pool.                                         |
| **Timelock**             | Smart contract enforcing a minimum delay on governance operations before they can be executed.                                                         |
| **Treasury**             | The protocol address that receives protocol fees from deposits and repayments.                                                                         |
| **Vault**                | A smart contract representing a single loan. Manages the full lifecycle from funding to repayment to settlement.                                       |
| **VaultPhase**           | The current state of a vault: RaisingFunds, AwaitingApproval, Active, FullyRepaid, Finalized, Renegotiation, or Defaulted.                             |
| **WASM Hash**            | The hash of the compiled vault contract bytecode, used by the Factory to deploy new vault instances.                                                   |