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Glossary

This section lists frequently seen terminology in our doc and in the app. Spigot related terms below are defined in the context of their usage in a Spigoted Line of Credit.
Term
Text
Arbiter
The Arbiter is a neutral party with some special privileges on behalf of Borrower and Lender(s) such as the ability to liquidate collateral (see here for more). It can be a third-party trusted by the Borrower and Lender or a single Lender that can represent all Lenders.
Collateral Ratio
The ratio of the value of collateral posted by a Borrower to the value of the Borrower's outstanding debt,
Credit
A credit line provided by a single Lender for a given token on a Line of Credit facility (each Credit has a unique ID).
Credit Token
The token deposited by a Lender and subsequently borrowed.
Deadline
The maturity date or expiry date of the Line of Credit.
Debt
The amount owed by a Borrower, made up of Interest Accrued and Principal
Default Revenue Split
The initial % of Revenue Tokens that a Spigot escrows for Lenders (represented by the Spigot Owner) if a Line of Credit is healthy. This is first set when a Spigot is deployed and attaches to a Revenue Contract.
Deposit
The total liquidity provided by a Lender in a given token on a Line of Credit.
dRate (drawn rate)
The annual interest rate charged to a Borrower on borrowed / drawn down funds.
Drawn Balance
The balance of funds that a Borrower has drawn down on an individual credit line or on the overall Line of Credit facility.
Escrowed Amount
The amount of Revenue Tokens claimed (in a single claim from the Spigot) that gets added to those Revenue Tokens already available for Lenders to withdraw (see also Escrowed).
Escrowed
The amount of Revenue Tokens captured by the Spigot into escrow and currently available for withdrawal by a Lender directly or to be converted to Credit Tokens and then withdrawn.
Facility Balance
The remaining balance of funds that a Borrower can still drawn down on an individual credit line or on the overall Line of Credit facility (aka headroom).
fRate (facility rate)
The annual interest rate charged to a Borrower on the remaining funds available, but not yet drawn down (rate charged on the still available credit aka headroom).
id
Reference id for the credit line made available to a Borrower by a single Lender for a given token on a Line of Credit. If a Lender deposits a second, different token into the same Line of Credit then this is treated as a separate credit line and id.
Insolvent
The status of a secured Line of Credit if a Borrower is permanently incapable of repaying debt.
Interest Accrued
Interest owed by a Borrower but not yet repaid to the Line of Credit contract
Interest Repaid
Interest repaid by a Borrower to the Line of Credit contract but not yet withdrawn by a Lender
Last Accrued
The time stamp at which accrued interest was last calculated on a credit line (id) and added to the total amount of Interest Accrued (accrued interest owed but not yet repaid).
Line of Credit
A revolving credit facility through which a Borrower can draw down on credit lines denominated in multiple tokens at varying rates of interest and from any number of Lenders.
Liquidatable
The status of the Line of Credit if not closed by the deadline (expiry/maturity date) or due to some other reason such as a breach of a target collateral ratio.
Minimum Collateral Ratio
The minimum permitted collateral ratio, below which a Borrower can not draw down Lenders' deposits.
Mutual consent
A process whereby certain things can only happen if two out of two parties sign off (e.g. a Lender depositing into a Line of Credit)
Operator (Spigot Operator)
The Spigot Operator is an address through which an obliging party in an agreement (e.g. a Borrower) is still able to execute whitelisted functions to carry on business as usual related to a Revenue Contract controlled by the Spigot Owner for the benefit of one or more Lenders.
Owner (Spigot Owner)
The Spigot Owner manages a Spigot for the benefit of one or more Lenders based upon programmable events.
In practice, the Owner can be (i) Borrower in order to deploy the Line of Credit, then (ii) the Line itself (representing Lender(s)) and governing the overall agreement) and also (iii) an Arbiter if the Line status becomes liquidatable.
Ownership is transferred during the lifetime of a Line of Credit according to programmed rules.
Principal
The amount of a Lender's Deposit on a Line of Credit that has actually been drawn down by the Borrower (USD)
Revenue Contract
The Borrower's smart contract whose revenue is providing security for a loan
Revenue Token
The token that is being escrowed by a Spigot, i.e. the tokens streaming from the Borrower's smart contract acting as security for a loan
Status
The status of a Line of Credit can be one of uninitialized, active, liquidatable, repaid or insolvent
Treasury (Spigot Treasury)
The Treasury is an address of the Borrower which receives all remaining Revenue Tokens that are not escrowed in the Spigot for the benefit of the Lenders to repay debt.
Unclaimed Revenue
Revenue Tokens that have been captured by the Spigot but which have not yet been claimed in to escrow.
Unused Tokens
Credit Tokens that have been purchased with Revenue Tokens after a claim from the Spigot. These Credit Tokens are available to be withdrawn by a Lender.
Whitelisted Functions
Those functions that a Borrower (Operator) is allowed to perform on a Revenue Contract whilst the Spigot is attached.
Last modified 1mo ago