📋Glossary

APR (Annual Percentage Rate)

The yearly rate of interest and fees on a loan, expressed as a percentage.

Asset Owner

An individual or entity who owns high-value collectibles and uses them as collateral to borrow liquidity.

Borrower

An asset owner who uses their collectible as collateral to receive a loan.

Collateral

An asset pledged to secure a loan, which can be seized in the event of loan default.

Collateralization

The act of pledging an asset as collateral for a loan.

Collectible

Items of luxury that are subject to Altr's digitisation process, allowing them to be represented as Non-Fungible Tokens (NFTs).

Contract

In this context, a smart contract on the blockchain that executes predefined functions autonomously.

Digitization

The conversion of physical assets into digital tokens (NFTs) that represent ownership and provenance.

ERC20 Token

The token format, predominantly stablecoins like USDT, used for loans.

Fee Reduction Factor

A variable that adjusts the origination fee of loans exceeding certain amounts.

Grace Period

A time window following loan expiry during which the borrower can repay the loan without being liquidated.

Governance Treasury

The designated address where protocol fees are collected.

Liquidation

The sale of collateral to recover an unpaid loan.

Liquidity Provider

An individual or entity who provides cash (USDT) for loans in exchange for holding collateral.

Loan Duration

The period for which a loan is active, usually expressed in days.

Loan-to-Value (LTV)

A ratio representing the maximum amount that can be borrowed, expressed as a percentage of the appraised value of the collectible.

Loan Type

A category of loans based on their duration and associated APR.

Metamask

A crypto wallet and gateway to blockchain apps, often used for account registration.

NFT (Non-Fungible Token)

A unique digital token that represents ownership and details of a physical or digital asset.

Oracle

A service that provides real-world data to smart contracts, such as asset prices.

Origination Fee

A one-time fee charged at the initiation of a loan.

Protocol Fee

A fee applied to the borrowed amount, usually as a percentage.

Repay Grace Fee

A fee applied for repayments made within the grace period but after the loan's due date.

Smart Contract

A self-executing contract on the blockchain with terms directly written into code.

State Variable

A variable within a smart contract that holds its current state, such as owner.

USDT

A stablecoin anchored to the value of the US Dollar, predominantly utilised for loans on the Altr platform.