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.