Intent. The loan you ask for: collateral asset and amount, borrow asset and amount, duration, the highest rate you will accept, and which venues you allow.Quote. A solver’s signed answer to your intent. It carries the fixed rate, the duration, the overdue rate and grace period, and the venue the loan starts on. A quote lasts about two minutes.Settlement. The transaction that turns a quote into a live loan. It either completes in full or fails, so a loan is never left half open.Pod. The account that holds one loan. Settlement opens a new pod for that loan alone, and your collateral, your debt and the solver’s bond all live in it. One borrower with three loans has three pods. The app shows a Pod ID on each position.Isolated position. Because every loan has its own pod, loans cannot reach into each other. Your collateral is not pooled with other borrowers’, and a loan in trouble somewhere else cannot touch yours.
Fixed rate. The annual rate you pay for the term. It is agreed for the whole term, so repaying early does not reduce the interest you owe.Maturity. When the term ends. Your duration sets it at settlement.Overdue rate. An extra annual rate added on top of your fixed rate if the loan is still open past maturity.Grace period. The window after maturity before anyone can liquidate the loan. Each quote sets its own, and it is often much shorter than the protocol’s 30-day cap. A one-day grace period on a seven-day loan is normal.
Solver. The counterparty that quotes your fixed rate and runs the floating-rate position behind it. It posts a bond to stand behind the terms it quoted.Venue. The lending protocol where the real collateralized borrow lives. See Supported markets.Refinance. A solver moving your position to another venue you allowed. Your fixed rate does not change.
Health factor. Your collateral measured against your debt. Below 1.0 the venue can liquidate you.Venue liquidation. The venue takes part of your collateral because your health factor fell too far. Your loan gets smaller and your fixed rate continues. See Venue liquidations.Bond. The capital a solver posts against your loan. It absorbs the gap between your fixed rate and what the venue actually charges.Solver liquidation. The bond is drawn down far enough to be liquidated. Your loan falls back to the venue’s floating rate. Your collateral is not touched. See What backs your fixed rate.Fallback. The state a loan is in after a solver liquidation: still on the venue, no longer fixed rate.
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