Glossary

Buyback and Burn

Mechanism where released capital from withdraws and yield surplus are used to buy back and burn project tokens, reducing circulating supply. See: Capital Lifecycle

Capital Divesting

State variable (capitalDivesting[token]) tracking released collateral available for the project to pull for buyback and burn operations. Increases when investors withdraw FT. See: State and Interfaces

Circuit Breaker

Velocity control on outflows that limits how fast capital can leave through wrapper withdraw paths. Uses a dual-buffer model to protect against exploit-velocity drains while ensuring exits remain available over time. See: Circuit Breaker

Collateral

The asset an investor deposits into a raise (e.g., USDC, WETH). Each accepted collateral type runs in an isolated pool with independent reserve accounting. Active collateral is routed to the yield strategy and backs investor principal protection. See: Raise Setup

Collateral Supply

State variable (collateralSupply[token]) tracking active backing collateral per token type. Increases on deposit, decreases on redeem. See: State and Interfaces

Deposit

The action of investing collateral into a raise. Collateral is received by the raise contract, routed to the yield strategy, and a pFT position NFT is minted. At deposit time, a live oracle price feed determines USD notional for FT allocation via deposit-time conversion. See: Investing and Positions

Deposit-Time Conversion

The process of converting collateral to FT allocation at deposit time using a live oracle price feed. The conversion records strike and ftPerUSD values that are used for all future exit calculations. See: Investing and Positions

Divest

Contract function (divest / divestUnderlying) implementing exits via redeem. Returns collateral (or strategy position tokens) to the investor. See: Hold, Redeem, and Withdraw

Dual-Buffer Model

The circuit breaker’s two-part rate limiter: a main replenishing buffer that caps total outflow within a time window, and an elastic buffer that tracks recent inflows and allows proportional additional outflow capacity. See: Circuit Breaker

FDV (Fully Diluted Valuation)

Token price multiplied by total token supply. Used to express raise valuation. Example: $0.10/token × 1B supply = $100M FDV. See: Raise Setup

FT (Fundraising Token)

The project’s token being sold in a raise. Investors receive fundraising token allocation at deposit time, which they can later withdraw to claim the FT tokens. See: Investing and Positions

ftAllocated

State variable tracking FT(fundraising token) currently allocated to active investor positions. Decreases on redeem and withdraw. See: State and Interfaces

ftOfferingSupply

State variable tracking FT(fundraising token) available for sale to new investors. Decreases when investors withdraw FT. See: State and Interfaces

ftPerUSD

Number of FT(fundraising token) per USD at the raise’s fixed token price, scaled to 1e8. Recorded at deposit time and used in exit conversion formulas. See: Formula Reference

Perpetual PUT

The perpetual exit right attached to every investor position. Has no expiry, requires no approval, and does not depend on the project team being active. Exercised via redeem. See: Guarantees

pFT

ERC-721 position token representing an investor’s position. Stores collateral token, amounts, FT(fundraising token) allocation, and strike/oracle context. Transferable as a standard NFT. See: Contract Map

Platform Fee

Percentage of yield taken by the platform (10% at launch), allocated to the DAO. No fee is charged on core user actions (deposit, redeem, withdraw). See: Fees and Economics

Principal Protection

The structural guarantee that investors can always redeem their deposited collateral via the perpetual PUT. Protection is proportional to reserve backing, not a fixed dollar guarantee. See: Guarantees

Proportional Settlement

Each investor receives their proportional share of the reserve pool. In normal operation, this equals the original deposit. In a reserve shortfall, it equals the proportional share of what remains. The last person to redeem gets the same rate as the first. See: Guarantees

Raise Cap

Maximum accepted deposits for a raise, configured at setup time. See: Raise Setup

Raise Isolation

Each raise operates with independent reserve collateral accounting, position state, yield strategy routing, and admin controls. A failure in one raise does not affect unrelated raises. See: Guarantees

Redeem

Exercise principal protection and exit to collateral. Implemented by the divest contract function. Always available, permissionless, and on-chain. See: Hold, Redeem, and Withdraw

Reserve

The pool of collateral backing investor positions in a raise. In normal operation, each investor’s proportional share equals their original deposit. In a shortfall, proportional settlement ensures fair distribution. Reserve accounting is per-raise (isolated). See: Guarantees

Strike

Oracle price at deposit time, scaled to 1e8 (Chainlink standard). Recorded during deposit-time conversion and used for exit calculations — the oracle is not consulted again at exit time. See: Formula Reference

Withdraw

Claim project tokens and forfeit principal protection on the withdrawn amount. Implemented by withdrawFT. Requires transferable to be enabled. Released capital moves to capitalDivesting for buyback and burn. See: Hold, Redeem, and Withdraw

Yield

Returns generated by the yield strategy on deposited collateral. Variable and not guaranteed. Distributed via the yield waterfall: platform fee (10%) to DAO, then net yield (90%) to the project. See: Fees and Economics

Yield Strategy

Protocol used to generate yield on deposited capital. Aave V3 is the only supported strategy at launch. Yield funds the platform fee, project ecosystem budget, and buyback and burn. See: Yield Strategy

Yield Waterfall

The distribution order of gross strategy yield: platform fee (10%) to DAO, then net yield (90%) to the project for ecosystem budget and buyback and burn allocation. See: Fees and Economics