> For the complete documentation index, see [llms.txt](https://credefi.gitbook.io/credefi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://credefi.gitbook.io/credefi/general/glossary-of-key-terminology.md).

# Glossary of Key Terminology

**Lender** - An individual or organization that provides funds to a borrower with the expectation of repayment, often with interest as compensation for risk. 

**Borrower** - A person or entity that receives funds from a lender and commits to repaying the loan, usually with added interest. 

**Interest Rate**  - The percentage charged by a lender on the amount borrowed, expressed as an annual percentage rate (APR). 

**APY (Annual Percentage Yield)** - A standardized measure that reflects the real rate of return on an investment or savings account over a year, accounting for the effect of compounding interest. 

**Loan** - A specific amount of money lent to a borrower, expected to be repaid with interest. 

**Loan Agreement** - A formal contract between a lender and a borrower outlining the loan terms, such as repayment schedule, interest rate, and other conditions. 

**Maturity** - The time at which a loan or financial instrument must be repaid in full. 

**Maturity Date** -  The specific date when the principal amount of a loan or financial instrument is due. 

**Real-World Assets (RWAs)** - Physical assets with tangible value, such as real estate or inventory, that can be bought, sold, or used as collateral for loans. 

**Collateral** - An asset pledged by a borrower to secure a loan, which can be liquidated if the borrower defaults. 

**Liquidation** - The process of converting assets into cash, often to pay off debt. 

**Collateral Liquidation** - The act of selling pledged collateral to recover unpaid loan amounts. 

**Risk Assessment** - A comprehensive evaluation of potential risks associated with a financial transaction or loan. 

**Non-custodial** - A service where users maintain full control of their assets without entrusting them to a third-party custodian. 

**Token** - A digital representation of value, managed and transferred using blockchain technology. 

**Contract** - A legally binding document outlining terms and agreements between parties in a transaction or business arrangement. 

**Smart Contract** - A self-executing digital contract that enforces and automates agreement terms via blockchain programming. 

**Liquidity** - Pool A pool of funds or assets available for lending or trading on a decentralized finance (DeFi) platform. 

**Loan Origination** - The comprehensive process of setting up a new loan, starting from application to disbursement. 

**Loan Originator** - An individual or organization responsible for managing the loan origination process. 

**Collateral Administrator** -  A party tasked with managing and overseeing collateral assets used to secure a loan. 

**Loan Portfolio** - A collection of loans or similar financial assets managed by a lender or financial institution. 

**Single Exposure** - The total exposure or risk a lender has with a particular borrower or asset. 

**Corporate Bonds** - Debt instruments issued by companies to raise capital, typically with a fixed interest rate and maturity date. 

**Delinquency** - The state of missing a scheduled loan payment or failing to meet a financial obligation on time. 

**Non-performing Loan** - A loan that has defaulted or has been overdue for a prolonged period and is unlikely to be fully repaid. 

**Bridge Financing** - A short-term loan designed to provide immediate funding while waiting for longer-term financing to become available. 

**Revolving Loan** - A flexible loan that allows the borrower to access funds up to a credit limit, repay, and then borrow again as needed. 

**Repayment Schedule** - A detailed plan listing the amounts and dates of payments due over the life of a loan.