Terminology

• Liquidity Providers — accredited investors that provide capital into the liquidity pool.

• Backers — Participants who supply junior tranche (first-loss) capital to individual Borrower Pools.

• Borrowers — Participants who raise capital from the protocol via Borrower Pools.

• Borrower Pool — Smart contract that encodes a set of financing terms for a Borrower, including the interest rate and repayment schedule, and through which the Borrower can borrow capital and repay it with those terms.

• Auditors — Participants who receive rewards for securing the protocol with a human eye.

• Community Governance — Community members make collective assessment on each financing proposal.