Sandclock Terminology, ordered alphabetically
Compound: to lock in the profits and reinvest them
Liquidation: a process that occurs when a borrower's liabilities exceed an agreed upon acceptable Loan-to-Value ratio. In such a scenario, a third party can pay off some or all the debt in order to unlock the borrower's collateral, typically at a discount.
Metavault: an entity that has been created in order to structure capital based on the creator's thesis.
Principal: the initial deposit
Risk: likelihood of a given strategy incurring a loss due to market conditions
Strategy: the strategy contract used to generate yield
Underlying: the default token for a given vault
Yield: the capital generated from the initial deposit