> 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 installment contains an interest component and a principal component, split separately for each tranche. | | **Allowlist** | A list of approved investor addresses for permissioned vaults. Managed by the Pool Manager. Independent of the protocol-wide compliance gate. | | **Arrears** | The deficit carried forward when a waterfall bucket isn't fully paid in a period. Cleared, in bucket order, before the next period's own dues. | | **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. Can never be the same address as the vault's manager. | | **Cancelled** | The lifecycle phase reached when a vault misses its funding or approval deadline. Investors pull their own refund via `claim_refund`. | | **Cash Pool** | The residual left after a repayment clears the six-bucket waterfall. Withdrawable by the borrower, blocked while behind on payments. | | **Collateral (manager)** | Tokens staked by a Pool Manager as guarantee, anchoring the vault's junior tranche. Locked when a vault is created, released on repayment, slashed (into the recovery pool) on default. | | **Collateral (borrower)** | An optional real-world asset or other token the borrower pledges into the shared escrow. Verified at disbursement, released on repayment, seized ahead of manager collateral on default. | | **Collateral Asset Whitelist** | A Globals list of assets eligible to be posted as manager or borrower collateral — separate from the list of assets that can be lent. | | **Compliance Gate** | An optional, Globals-configured contract (`is_allowed(who, action)`) checked before investing, borrowing, and vault creation. Unset means every check passes. | | **Concentration Floor** | The level of protocol-wide outstanding principal below which borrower/manager share caps don't yet apply, so the protocol's first loans aren't blocked. | | **Covenant** | A loan-level condition beyond repayment itself — the cash-pool lock while a borrower is behind, and an optional reporting-cadence requirement. | | **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 (net of the protocol fee) with an investor's deposit. Tranche identity is tracked separately, not by the token. | | **Default** | Triggered when a borrower fails to repay within the grace period. Results in manager collateral slashing, any borrower pledge seizure, and delinquency flagging. | | **Delinquency** | A flag applied to Pool Managers whose vaults have defaulted. Blocks new vault creation until cleared by an Operations Admin. | | **Exposure Cap** | A protocol-wide limit on a single borrower's or manager's outstanding principal as an absolute amount or a share of total outstanding, enforced by the Factory at vault creation. | | **Factory** | Smart contract that deploys new vault instances. Validates parameters, leverage, exposure caps, and manager eligibility before deployment. | | **Finalized** | The single terminal vault phase, reached from FullyRepaid, Cancelled, or Defaulted once every party has claimed. No further actions possible. | | **Globals** | Smart contract managing protocol-wide settings, roles, fees, both asset whitelists, manager collateral, and exposure tracking. | | **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's senior or junior tranche and earns yield from borrower repayments. | | **Junior Tranche** | The first-loss investor layer, anchored by the manager's own collateral. Paid last, loses first, earns a spread. | | **Junior Spread** | The share of senior's interest paid to junior each period as compensation for absorbing losses first. | | **Late Fee** | A governed penalty (default 18% p.a.) applied by the Pool Manager when a payment is overdue, collected through the senior/junior arrears buckets. | | **Leverage Ratio** | How large senior capital may be as a multiple of junior. Determines the size of each tranche; capped differently for collateralized vs. uncollateralized loans. | | **NAV Write-Down** | A linear, view-only markdown of a tranche's outstanding-principal value as a loan falls further behind, before formal default. Reverses if the borrower catches up. | | **Operations Admin** | Protocol role responsible for approving/removing pool managers, setting credit limits, clearing delinquency, and updating settings/fee (not timelocked). | | **Permissioned Vault** | A vault where only allowlisted addresses can deposit, in either tranche. Access controlled by the Pool Manager. | | **Permissionless Vault** | A vault where any address can deposit — a future capability; today's vaults are permissioned. | | **Pool Manager** | A professional underwriter who evaluates borrowers, structures loans, stakes collateral that anchors the junior tranche, and manages vaults. | | **Principal** | The total loan amount requested by the borrower and funded by investors across both tranches. | | **Protocol Fee** | A 0.5% fee sent to the treasury, taken from investor deposits in either tranche. | | **Recovery Pool** | On default, the vault's full balance (slashed collateral, seized pledge proceeds) allocated to tranches in seniority order via `distribute_recovery`. | | **Related Party** | A manager-declared disclosure flag for a deal that off-chain policy considers related, even where the borrower and manager addresses don't literally match. | | **Renegotiation** | Process where the Pool Manager proposes new loan terms (rate + term); approving now requires both the manager and the borrower to authorize it. Active only. | | **Reserve Fee** | The protocol's share of each period's interest, taken as the most senior bucket in the payment waterfall (default 10%). | | **Security Admin** | Protocol role with emergency pause/unpause powers. | | **Senior Tranche** | The protected investor layer, paid first each period and only loses once junior is wiped out. Opens only after the junior tranche is locked. | | **SEP-41** | Stellar Ecosystem Proposal 41 — the fungible token standard on Stellar/Soroban. | | **SEP-45** | Stellar's web authentication standard for smart (contract) accounts — used for Trilobyte's passkey sign-in. | | **Soroban** | Stellar's smart contract platform, providing a Rust-based execution environment. | | **Timelock** | Smart contract enforcing a minimum delay (in ledgers) on governance operations before they can be executed. Can be made the enforced admin for upgrades via `require_timelock_admin`. | | **Treasury** | The protocol address that receives the protocol fee and the reserve fee. | | **Vault** | A smart contract representing a single loan with two tranches. Manages the full lifecycle from funding to repayment to settlement. | | **VaultPhase** | The current state of a vault: RaisingFunds, AwaitingApproval, Active, FullyRepaid, Cancelled, Finalized, Renegotiation, or Defaulted. | | **Waterfall** | The strict, ordered allocation of each repayment (and each default recovery) across six buckets: reserve fee, senior interest, senior principal, junior interest, junior principal, residual. | | **WASM Hash** | The hash of the compiled vault contract bytecode, used by the Factory to deploy new vault instances. | *As of September 2026.*