# Glossary

**Compound:** to lock in the profits and reinvest them

**HNWI*****:** High Networth Individual*

**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.

{% hint style="info" %}
Ex: "Aligning with my thesis to build up my wealth by DCA with my yield. My Metavault will create inter-generational wealth for my family."
{% endhint %}

**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


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