> For the complete documentation index, see [llms.txt](https://docs.hann.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hann.finance/overview/glossary.md). # Glossary Assets, positions, ratios, deposits, and transaction terms ## Assets and positions | Term | Meaning | | ------------------- | ------------------------------------------------------------------------------------------------------------------------------------------ | | CDP | Collateralized Debt Position: collateral deposited into a position to mint USDHN debt. | | Trove | An individual CDP position with its own collateral, debt, interest rate, and NFT identifier. | | Collateral branch | The contracts and rules for one CDP collateral type, including its price feed and Stability Pool. | | Collateral | Assets used to secure a loan. Their value determines borrowing capacity and liquidation conditions. | | Debt | The amount owed, including borrowed or minted tokens, accrued interest, and applicable fees. | | USDHN | Hann Finance's overcollateralized token targeting a market value of $1. | | Peg | The target relationship between a token's market value and its reference value, such as 1 USDHN ≈ 1 USD. | | Redemption | Burning USDHN in exchange for protocol collateral, minus the redemption fee. It reduces the debt and collateral of the affected Troves. | | Liquidation | Settlement of a position that meets the protocol's liquidation conditions. Collateral pays for debt settlement and liquidation incentives. | | Lending market | A pool where users supply assets and borrowers draw available liquidity against collateral. | | LST | Liquid Staking Token: a transferable token representing a share of staked assets. | | bKAIA | Shares of the bKAIA vault's staked KAIA. Its KAIA value follows the vault's share accounting. | | HNKAIA | Shares of a multi-asset vault valued in KAIA and holding supported Kaia LSTs. | | Vault share | A token representing a portion of a vault's assets. The amount of underlying assets per share follows the vault's conversion rate. | | Oracle / price feed | A source of asset prices or conversion rates used by the contracts. Market quotes and oracle values serve different operations. | ## Borrowing ratios For a CDP with positive debt: $$ CR = \frac{\text{Collateral value}}{\text{Debt value}}, \qquad LTV = \frac{\text{Debt value}}{\text{Collateral value}} $$ Use the same valuation and currency in both the numerator and denominator. A CR of 1.5 is 150%; its LTV is approximately 66.7%. | Term | Meaning | | ------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | CR / ICR | Collateral ratio / individual collateral ratio: the collateral value divided by the debt value of a Trove. | | LTV | Loan-to-value: debt value divided by collateral value. | | MCR | Minimum collateral ratio used in a branch's individual-position requirements. | | TCR | Total collateral ratio of a CDP branch. | | CCR | Critical collateral ratio. A branch TCR below this level restricts specified borrowing operations. | | SCR | Shutdown collateral ratio. A branch TCR below this level enables its shutdown condition. | | Interest rate | The annual rate used to accrue borrowing interest. Accrued interest increases debt. | | Health factor | A lending-account ratio that weights collateral by its liquidation thresholds and divides the result by total debt. Below 1, the account meets the health-factor condition for liquidation. | For a lending account with positive debt: $$ \text{Health factor} \= \frac{\sum\_i \text{Collateral value}\_i \times \text{Liquidation threshold}\_i} {\text{Total debt value}} $$ Each liquidation threshold is expressed as a fraction. MCR, CCR, and SCR are CDP branch parameters; health factor belongs to the lending account. Branch contracts and lending reserve settings supply the applicable values. ## Deposits and withdrawals | Term | Meaning | | --------------------- | -------------------------------------------------------------------------------------------------------------------- | | Earn / Stability Pool | A branch's USDHN pool. Deposits offset liquidated debt and receive collateral gains and allocated interest. | | Collateral gain | Collateral allocated to an Earn depositor when the Stability Pool offsets liquidated debt. | | aToken | The receipt token for an asset supplied to a lending market. Its balance follows the lending supply accounting. | | LP token | A token recording the holder's share of a liquidity pool. | | LP staking | Depositing LP tokens into a reward contract to receive its allocated rewards. | | Unbonding | The waiting period between an unstaking request and the underlying staking withdrawal. | | Withdrawal ticket | A record of a bKAIA unstaking request routed to an underlying node. Ready tickets can be claimed for KAIA. | | Cooldown | A route's waiting period before a specified operation becomes available, such as an exit or an interest-rate change. | | APR | Annual Percentage Rate: an annualized rate without assuming that returns are reinvested. | | APY | Annual Percentage Yield: an annualized return that includes the stated compounding assumptions. | ## Swaps and execution | Term | Meaning | | --------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | StableSwap | A pool design for exchanging assets with similar values. Pool balances, amplification, fees, and rates determine its quote. | | Slippage | The change between a quoted outcome and the executed outcome. | | Price impact | The change in a pool's execution price caused by the size of a trade. | | `minOut` | The minimum output accepted by a transaction. An output below this amount causes the protected operation to revert. | | Deadline | The last timestamp at which an operation can execute. | | Zapper | A contract that combines operations such as collateral conversion, borrowing, repayment, and swaps into one transaction. Required approvals are separate steps. | | Permit2 | A token-spending system that uses specified allowances or signed permissions. The spender, amount, and expiry define the permission. | | Flash swap | Liquidity obtained through a DEX callback and settled within the same transaction. | | Leverage / loop | Increasing exposure by borrowing and using the proceeds to acquire more collateral. Debt and collateral both increase. | | MEV | Value captured through transaction inclusion or ordering. It can affect swap execution. | | Bridge | A route that transfers value between a source chain and a destination chain. | | OFT | Omnichain Fungible Token: a cross-chain token design that uses messages to coordinate token transfers. Source confirmation and destination delivery are separate stages. | --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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