# Glossary

## Protocol-Specific Terms

| Term                  | Definition                                                                                                                            |
| --------------------- | ------------------------------------------------------------------------------------------------------------------------------------- |
| **BT (Bond Token)**   | ERC-20 zero-coupon bond that redeems 1:1 into the underlying asset at expiry. Traded in the AMM, borrowed/lent in the lending market. |
| **CT (Coupon Token)** | ERC-20 token that tracks all interest/yield due on a given BT line. CT holders accrue interest/rewards from the underlying yield.     |
| **FW (FiraWrapped)**  | Yield-bearing wrapper for underlying assets. The base unit of account in Fira markets. Mintable and redeemable frictionlessly.        |

## Technical Terms

| Term                             | Definition                                                                                              |
| -------------------------------- | ------------------------------------------------------------------------------------------------------- |
| **LTV (Loan-to-Value)**          | Ratio of debt to collateral value. UZR uses 88% LTV.                                                    |
| **LLTV (Liquidation LTV)**       | Threshold above which positions become eligible for liquidation.                                        |
| **IRM (Interest Rate Model)**    | Smart contract that determines borrowing rates. UZR uses a fixed rate IRM at 0.10% APR.                 |
| **AMM (Automated Market Maker)** | Decentralized exchange mechanism used for BT trading in Fira V1.                                        |
| **Maturity**                     | The date at which a BT redeems at par (1:1 with underlying).                                            |
| **Par Value**                    | The face value of a BT at maturity (1 underlying).                                                      |
| **Discount**                     | The difference between current BT price and par value. This discount represents the implied fixed rate. |
| **Rehypothecation**              | Reuse of deposited liquidity in secondary markets (variable-rate vaults).                               |
| **Health Factor**                | Metric indicating how close a position is to liquidation.                                               |


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