Glossary of Terms
Key terms and concepts used throughout the Raze Vault platform and this documentation.
Term | Definition |
|---|---|
APY | Annual Percentage Yield — the annualized rate of return on an investment, accounting for the effect of compounding. |
AML | Anti-Money Laundering — regulations and procedures designed to prevent the generation of income through illegal actions. |
DeFi | Decentralized Finance — financial services built on blockchain technology that operate without traditional intermediaries. |
EVM | Ethereum Virtual Machine — the runtime environment for smart contracts on Ethereum and compatible blockchains. |
Fiat | Government-issued currency (e.g., USD, EUR) as opposed to cryptocurrency. |
Gas | The fee required to execute transactions on a blockchain network. Gas costs vary by network and transaction complexity. |
JWT | JSON Web Token — a secure, compact token format used for authentication. On Raze Vault, JWTs are generated from wallet signatures. |
KYC | Know Your Customer — the identity verification process required before accessing investment features on the platform. |
Lock Period | The minimum duration during which an investment cannot be withdrawn from a vault. |
Maturity | The date at which a vault investment reaches the end of its term and becomes eligible for redemption. |
Multi-chain | Operating across multiple blockchain networks. Raze Vault is multi-chain, supporting products on XDC Network and Redbelly Network. |
Multisig | Multi-signature — a wallet type requiring multiple approvals to authorize transactions, commonly used by institutions. |
Non-Custodial | A system where the user retains full control of their assets and private keys. Raze Vault does not take custody of user funds. |
On-Chain | Data or transactions recorded directly on a blockchain, providing transparency and immutability. |
Principal | The original amount of money invested, excluding any earned yields or returns. |
RBAC | Role-Based Access Control — a system that assigns permissions based on user roles (investor, issuer, administrator). |
Redemption | The process of withdrawing your investment and accrued yields from a vault after it reaches maturity. |
Simple Interest | Interest calculated only on the principal amount, not on previously earned interest. |
Smart Contract | A self-executing program on a blockchain that automatically enforces the terms of an agreement. |
Tokenized | The process of representing a real-world asset or financial instrument as a digital token on a blockchain. |
Vault | A structured investment product on Raze Vault that holds and manages investor funds according to defined yield rules. |
Yield | The return earned on an investment, typically expressed as an annual percentage (APY). |