Glossary
Vault
A pool of assets governed by a program and a defined investment strategy. An Akashi vault has Senior and Junior tranches.
Tranche
A group of shares with its own rule for allocating gains and losses. Senior and Junior share a vault’s assets but receive different results.
Share
A token representing participation in a tranche. The number you hold and its current value are different measurements.
Senior and Junior
Junior takes losses first and receives the premium from Senior’s proportional gains. Senior absorbs losses after Junior is exhausted. Neither is guaranteed.
Coverage
Junior value divided by combined Senior and Junior value. A minimum coverage rule can constrain Senior deposits and Junior exits.
Premium
The portion of Senior’s proportional positive result transferred to Junior under the configured curve. It is not extra income created outside the strategy.
NAV
Net asset value: the recognised value of the assets backing the vault. NAV is different from immediately available USDC.
Booked value and locked profit
Booked value is value already allocated to the tranche accounts. Locked profit is a positive result awaiting allocation under profit-smoothing rules. A loss can consume remaining locked profit before reducing booked tranche value.
Idle cash
USDC held available in the vault instead of deployed into a position. Program ledgers and funding rules determine how it may be used.
Leg and adapter
A leg is one investment position. An adapter is the program that connects the vault to a supported position or action and valuation path.
Request, funding and claim
A request holds shares for withdrawal. Funding prices an eligible portion and reserves USDC. A claim transfers the funded USDC to the owner.
Liquidity and utilisation
Liquidity is the ability to turn a position into the required payment asset. Lending utilisation measures how much supplied liquidity is borrowed. High utilisation can constrain exits.
APR and APY
Annualised return measures. APY includes a compounding assumption. APR is usually expressed without that compounding. Always read the source’s definition and period. Neither term makes an estimate a promise.
TVL
Total value locked: the value held in a product or pool. It is not the amount available for immediate withdrawal.
Slippage
The difference between an expected execution price and the price actually received. A slippage tolerance is the maximum difference permitted for an action. The program can reject execution outside that limit. Trading fees and price impact are related costs, but are not the same definition.
Impairment and recovery
Impairment records reduced recognised value or an outstanding loss. Recovery is the state and process for handling an incident. It does not guarantee repayment.
Timelock
A required delay before a supported queued change can execute. Immediate restrictions and other instructions can follow different rules.
Mainnet, devnet and fixture
Mainnet uses real assets. Devnet is a test network. A fixture is a test implementation used to check a narrower scenario. It is not proof of a real production integration.