Glossary
Board
A market's list of open offers, each with how much is still available, the collateral it asks for, its interest and its term. No offer on it carries a name. The interface sometimes calls it the book.
Collateral
The tokens a borrower posts when drawing a loan. Returned in full on repayment; taken in full by the lender if the loan is not repaid by the end of its grace window.
Cover
How much an offer's collateral is worth compared with the amount lent, at the prices the interface shows. 2× cover means the collateral is worth about twice the loan. It is a guide for the lender; the protocol never checks prices.
Default
A loan that was not repaid by the end of its grace window. Repayment is no longer possible and the lender may seize the collateral.
Draw
Taking all or part of an offer as a loan. Each draw becomes its own loan, with its own due date.
Due date
The moment a loan's term ends: the time it was drawn plus the term. Repaying after it, within the grace window, adds the late fee.
DUST
The Midnight network's fee resource. Shielded, not transferable, and generated by holding NIGHT. Every transaction pays its network fee in DUST.
Faucet
The page in the interface that issues free test tokens on the testnet.
Grace window
A short period after the due date, fixed by the term, during which a borrower can still repay with the late fee and the lender still cannot seize.
Interest
A flat charge for the whole term, set by the lender as a percentage of the amount borrowed. Not a yearly rate.
Interest range
The lowest and highest interest a market lets a lender set on an offer.
Late fee
A percentage of the principal, set per market and fixed when a loan is drawn, that a borrower pays for repaying during the grace window. Goes entirely to the lender.
Lending token
The one token a market lends and is repaid in. sUSDC in the USDC market, sADA in the ADA market.
Loan
One draw from an offer, with its own due date. A loan is repaid in full or not at all.
Loan token
The token a borrower receives on drawing a loan. It is the key to claiming the collateral back after repayment.
Market
A board of offers for one lending token, with its own accepted collateral, terms, fee rates and minimums.
Midnight Preview
The Midnight test network AMP Finance currently runs on. Tokens on it have no value.
NIGHT
The Midnight network's own token. Holding it generates DUST. Its shielded twin is sNIGHT.
Offer
A lender's standing terms on a market's board: an amount, a collateral requirement, an interest rate and a term. Borrowers can draw all or part of it.
Offer token
The token a lender receives on posting an offer. It is the key to cancelling the offer, collecting each repayment and seizing collateral on default, for every loan drawn from that offer.
Position
An offer or a loan that a wallet controls, by holding its token.
Position token
An offer token or a loan token. Holding it is the only authority over that position. Positions and recovery.
Principal
The amount borrowed.
Proof
What every Midnight transaction carries to show it follows the contract's rules without revealing private details. It is built on the device, which is why a transaction takes tens of seconds.
Protocol fee
A percentage of the interest that AMP Finance keeps when a loan is repaid. Paid out of the lender's interest; never added to what the borrower repays. Fixed into an offer when it is posted.
Seizure
The lender taking all of a defaulted loan's collateral. Closes the loan permanently.
Shielded address
The address a wallet receives shielded tokens at. It never appears on a market, but anyone given it can check which payouts from AMP Finance went to it. Sharing a shielded address.
Shielded token
A token whose holder is hidden. AMP Finance lends, borrows and holds only shielded tokens. Written with an s prefix: sNIGHT, sUSDC.
Shielding
Swapping a public token for its shielded twin, one for one, through the asset's shielding contract. Unshielding is the reverse.
Shielding contract
The contract, one per asset, that issues a shielded token and holds the public token in reserve until it is unshielded.
Term
How long a loan runs, chosen by the lender from that market's list. Each term carries its own grace window.
Testnet
AMP Finance's deployment at preview.ampfinance.io, on Midnight Preview, for testing and development only. Nothing on it has value, and it can be updated, erased or replaced at any time. Testnet.
Unshielded address
A wallet's public address. It shows on the ledger when the wallet shields a token or receives the tokens from an unshield.