Glossary

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.

Ex. "Aligning with my thesis to build up my wealth and give back, my Metavault will create inter-generational wealth for my family, continuously invest into $QUARTZ, and support a charity to help homeless animals."

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