Glossary

This section lists frequently used terminology

Spigot related terms are defined in the context of their usage in a Secured Line of Credit.
Term
Meaning
Active
The Line is healthy, available to receive deposits from Lenders and for Borrowers to drawn down funds.  
Arbiter
The Arbiter is a neutral third party with special privileges designated by the parties to the agreement from the outset of the agreement (see here for more). 
Available
The amount of funds available to a Borrower to draw down on a given credit position, made up of:

funds deposited by lenders (aka deposit)
+
funds drawn down by the Borrower (aka principal)
-
interest repaid by a Borrower to the Line of Credit contract but not yet withdrawn by Lenders (aka interestRepaid)
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 if a Line of Credit is healthy. This is first set when a Spigot is deployed and attached 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.
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 position 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 position 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 repaid by the deadline (expiry/maturity date) or due to some other reason such as a breach of a minimum collateral ratio.
Minimum Collateral Ratio
The minimum permitted collateral ratio, below which a Borrower can not draw down on 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)
Next in Q
The ID of the next lender deposit / credit position to be repaid by the Borrower according to the order in which deposits were drawn down (FIFO).

If nothing has been drawn down then priority is according to the order in which withdraw has been initiated.
Operator (Spigot Operator)
The Spigot Operator is an address through which a Borrower is able to receive its share of Revenue Tokens and to execute whitelisted functions to carry on business as usual.

These functions relate to a Revenue Contract controlled by the Spigot Owner for the benefit of one or more Lenders.
Operator Tokens
The remainder of the amount of Revenue Tokens claimed from one or more Revenue Contracts into the Spigot after the split between the Owner (representing Lenders) and the Operator (Borrower).
These tokens are available for withdrawal. 
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.
Owner Tokens
The amount of Revenue Tokens claimed from one or more Revenue Contracts into the Spigot escrow and which are currently available for withdrawal by a Lender.
Principal
The amount of a Lender's Deposit that has actually been drawn down by the Borrower.
Repaid
The status of the Line when a Borrower has fully repaid all Lenders’ principal and interest.
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 Revenue Contract acting as security for a loan.
Status (or Health Status)
The status of a Line of Credit can be one of uninitialized, active, liquidatable, repaid or insolvent.
Uninitialized
The status of the the Line when it’s been deployed but some checks haven’t yet been passed, such as checking that the Line is the owner of the escrow, i.e. line.init() hasn’t been called on the line.
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
Defined and agreed functions that a Borrower (Operator) can still call on a Revenue Contract controlled by a Spigot in order to carry out necessary business functions related to that contract.
​
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Term	Meaning
Active	The Line is healthy, available to receive deposits from Lenders and for Borrowers to drawn down funds.
Arbiter	The Arbiter is a neutral third party with special privileges designated by the parties to the agreement from the outset of the agreement (see here for more).
Available	The amount of funds available to a Borrower to draw down on a given credit position, made up of: funds deposited by lenders (aka deposit) + funds drawn down by the Borrower (aka principal) - interest repaid by a Borrower to the Line of Credit contract but not yet withdrawn by Lenders (aka interestRepaid)
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 if a Line of Credit is healthy. This is first set when a Spigot is deployed and attached 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.
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 position 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 position 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 repaid by the deadline (expiry/maturity date) or due to some other reason such as a breach of a minimum collateral ratio.
Minimum Collateral Ratio	The minimum permitted collateral ratio, below which a Borrower can not draw down on 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)
Next in Q	The ID of the next lender deposit / credit position to be repaid by the Borrower according to the order in which deposits were drawn down (FIFO). If nothing has been drawn down then priority is according to the order in which withdraw has been initiated.
Operator (Spigot Operator)	The Spigot Operator is an address through which a Borrower is able to receive its share of Revenue Tokens and to execute whitelisted functions to carry on business as usual. These functions relate to a Revenue Contract controlled by the Spigot Owner for the benefit of one or more Lenders.
Operator Tokens	The remainder of the amount of Revenue Tokens claimed from one or more Revenue Contracts into the Spigot after the split between the Owner (representing Lenders) and the Operator (Borrower). These tokens are available for withdrawal.
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.
Owner Tokens	The amount of Revenue Tokens claimed from one or more Revenue Contracts into the Spigot escrow and which are currently available for withdrawal by a Lender.
Principal	The amount of a Lender's Deposit that has actually been drawn down by the Borrower.
Repaid	The status of the Line when a Borrower has fully repaid all Lenders’ principal and interest.
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 Revenue Contract acting as security for a loan.
Status (or Health Status)	The status of a Line of Credit can be one of uninitialized, active, liquidatable, repaid or insolvent.
Uninitialized	The status of the the Line when it’s been deployed but some checks haven’t yet been passed, such as checking that the Line is the owner of the escrow, i.e. line.init() hasn’t been called on the line.
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	Defined and agreed functions that a Borrower (Operator) can still call on a Revenue Contract controlled by a Spigot in order to carry out necessary business functions related to that contract.

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