> For the complete documentation index, see [llms.txt](https://triple-plus-global.gitbook.io/tpt-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://triple-plus-global.gitbook.io/tpt-whitepaper/resources/glossary.md).

# Glossary

## A

**AML (Anti-Money Laundering)**\
Regulations and procedures to prevent illegal money from entering the financial system.

**APY (Annual Percentage Yield)**\
The effective annual rate of return, accounting for compounding.

**Asset**\
In TPT context, a trade finance instrument (invoice, purchase order, trade document) that can be tokenized and traded.

## B

**Backer**\
Term used by some protocols for investors who provide first-loss capital. In TPT, see "Investor."

**Blockchain**\
A distributed ledger technology that records transactions across many computers.

## C

**Collateral**\
Assets pledged as security for a loan or obligation.

**Credit Risk**\
The risk that a debtor will fail to pay their obligations.

## D

**DAO (Decentralized Autonomous Organization)**\
An organization governed by smart contracts and token holder votes rather than traditional management.

**Debtor**\
The party who owes payment on an invoice (the business customer who received goods/services).

**Default**\
Failure to pay an obligation when due.

**DeFi (Decentralized Finance)**\
Financial services built on blockchain technology without traditional intermediaries.

**Discount Rate**\
The percentage below face value at which an asset is sold. A 5% discount on a $100 invoice means it sells for $95.

## E

**Escrow**\
A neutral holding arrangement where assets or funds are held by a third party (in TPT, a smart contract) until conditions are met.

**ERC-20**\
A standard for fungible tokens on Ethereum-compatible blockchains.

## F

**Face Value**\
The full amount payable at maturity. A $100,000 invoice has a face value of $100,000.

**Factoring**\
Selling receivables at a discount for immediate cash.

**FIDU**\
A token used by some protocols to represent liquidity provider positions. Not used in TPT.

## G

**Gas**\
Transaction fees on blockchain networks.

**Governance**\
The system by which protocol decisions are made and implemented.

**Grace Period**\
Additional time allowed after a payment due date before declaring default.

## I

**Invoice**\
A document requesting payment for goods or services delivered.

**Investor**\
A participant who provides capital to fund trade finance assets and earns yields.

## K

**KYB (Know Your Business)**\
Verification process for business entities.

**KYC (Know Your Customer)**\
Verification process for individual users.

## L

**Letter of Credit (L/C)**\
A bank guarantee of payment in international trade.

**Liquidity**\
The ease with which an asset can be converted to cash.

**Liquidity Provider**\
A participant who supplies capital to a pool for passive yield.

## M

**Maturity**\
The date when payment is due on a financial instrument.

**Multi-sig**\
A security mechanism requiring multiple signatures to authorize a transaction.

## N

**Net Terms**\
Payment terms specifying when payment is due (e.g., Net 30 = due in 30 days).

**NFT (Non-Fungible Token)**\
A unique token representing ownership of a specific asset.

## O

**Oracle**\
A service that provides external data to smart contracts.

**OTC (Over-the-Counter)**\
Trading directly between parties rather than through an exchange.

## P

**P2P (Peer-to-Peer)**\
Direct transactions between users without intermediaries.

**Polygon**\
The blockchain network where TPT is deployed.

**Pool**\
A collection of assets managed together.

**Purchase Order (PO)**\
A buyer's formal order to a supplier.

## R

**Receivable**\
Money owed to a business.

**Recovery**\
The process of collecting payment after a default.

**RWA (Real-World Asset)**\
Physical or traditional financial assets represented on blockchain.

## S

**Seller**\
A business that submits trade finance assets to the platform for liquidity.

**Settlement**\
The final distribution of funds when an asset matures.

**Slashing**\
Penalty mechanism where staked tokens are confiscated for bad behavior.

**Smart Contract**\
Self-executing code on a blockchain that enforces agreement terms.

**Stablecoin**\
A cryptocurrency designed to maintain stable value, typically pegged to USD.

**Staking**\
Locking tokens in a contract to gain access or earn rewards.

## T

**Time-lock**\
A delay mechanism that prevents immediate execution of sensitive operations.

**Tokenization**\
The process of representing an asset as a blockchain token.

**TPT**\
The native utility token of the TPT Protocol.

**Trade Finance**\
Financial instruments and products that facilitate international and domestic trade.

**Tranche**\
A slice or portion of a larger pool, often with different risk/return profiles.

**TVL (Total Value Locked)**\
The total value of assets deposited in a protocol.

## U

**USDC**\
A USD-pegged stablecoin issued by Circle.

**USDT**\
A USD-pegged stablecoin issued by Tether.

## V

**Verification**\
The process of confirming asset authenticity and debtor creditworthiness.

**Verifier**\
A participant who validates assets on the platform.

**Vesting**\
A schedule by which tokens become available over time.

## W

**Wallet**\
Software or hardware that stores blockchain private keys and enables transactions.

**Whitepaper**\
A document describing a protocol's technology, economics, and vision.

## Y

**Yield**\
The return earned on an investment, typically expressed as APY.