> For the complete documentation index, see [llms.txt](https://qiro.gitbook.io/qiro-vaults/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://qiro.gitbook.io/qiro-vaults/about-us/glossary.md). # Glossary Definitions for the terms used throughout these docs. ### The vault | Term | Definition | | -------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Qiro Credit Vault** | A smart contract that pools stablecoin deposits from verified investors and deploys them into curated private credit facilities. Each vault has its own strategy, yield profile, liquidity terms, and Risk Curator. | | **Vault shares** | The token you receive when you deposit. Shares represent proportional ownership of the vault, not a claim on any specific loan. Your balance never changes; what each share is worth does. | | **Share price** | The value of one share. Deposits are priced at the optimistic valuation, redemptions at the conservative one. | | **NAV (Net Asset Value)** | Everything the vault holds — idle stablecoins, principal deployed to borrowers, and yield earned but not yet returned — less accrued fees. | | **Optimistic valuation** | The basis used to price deposits and report NAV. Counts idle cash, deployed principal, and yield accrued on that principal. | | **Conservative valuation** | The basis used to price redemptions. Counts idle cash and deployed principal, excluding yield accrued but not yet received. | | **Idle capital** | Stablecoins sitting in the vault, not yet deployed. Redemption claims are paid from it. | ### Roles | Term | Definition | | ---------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Risk Curator** | The party that allocates vault capital: which approved borrower is funded, how much, and when capital is recalled. Qiro holds this role across the vaults at launch. | | **Servicer** | The operator that processes the redemption queue, converting pending requests into claimable assets. | | **Investor** | A verified depositor. Selection is the curator's responsibility; underwriting is Qiro's. | | **Borrower** | A company receiving capital from a facility. Qiro's three archetypes are payment processors, private credit funds, and fintech lenders / NBFIs. | ### Structure | Term | Definition | | ------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Subaccount** | An isolated allocation unit within a vault. It deploys under a mandate agreed with Qiro in advance — which facilities it may fund, how many, and in what proportions — and may hold several facilities at once. Capital in one Subaccount is held apart from every other. | | **Deal SPV** | A bankruptcy-remote vehicle established for a specific borrower relationship. The SPV, not the curator, is the legal lender. | | **Position limit** | A hard ceiling, enforced by the contracts, on the cumulative capital any single Subaccount can draw from the vault. | ### Deposits and redemptions | Term | Definition | | ---------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Deposit** | Sending stablecoins to the vault and receiving shares in the same transaction. Deposits are synchronous. | | **Redemption request** | A submitted intention to exit. Your shares are locked and you join the queue. | | **FIFO queue** | First in, first out. Requests are serviced in order of submission, globally across all investors. | | **Servicing** | The step that converts a pending request into claimable assets: shares are burned and priced at the prevailing share price. A large request may be serviced across more than one round. | | **Claim** | Collecting your assets after servicing. Paid from the vault's idle capital to the address you specify. | | **Lock-up** | A minimum holding period before a redemption request can be made. Lock-ups and redemption cadence are operational commitments made per vault, not timers enforced by the smart contracts. | ### Credit | Term | Definition | | -------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | **Underwriting** | The credit process every borrower clears before any capital is committed: financial analysis, business plan review, management interviews, proprietary scoring, and an internal rating. Always performed by Qiro, regardless of who curates the vault. | | **Hard gates** | Bright-line exclusions applied to every borrower before credit analysis begins, covering operating history, licensing, geography, and credit type. A borrower who fails one is not underwritten. | | **Credit Assessment Memo (CAM)** | The document produced for each approved borrower, recording the credit decision and the basis for it. | | **Security cover** | The ratio of pledged collateral value to the outstanding balance of a facility. Qiro structures facilities at 1.0x to 1.5x. | | **Receivables** | Amounts owed to a borrower by its own customers, pledged as collateral. For payment financing these are in-transit settlement flows; for institutional credit, a diversified pool of retail and SME receivables. | | **Covenants** | Conditions a borrower must continue to meet while a facility is outstanding. A breach gives the curator the right to trigger early repayment or enforcement. | | **NBFI** | Non-Bank Financial Institution. A lender that extends credit without holding a banking licence. | ### Access | Term | Definition | | ----------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **KYC / KYB** | Know Your Customer and Know Your Business: the identity and entity verification every investor completes before depositing. | | **Accredited investor** | An investor meeting the wealth, income, or institutional thresholds set by their jurisdiction. Qiro vaults are limited to accredited and institutional investors. | | **Investor whitelist** | The on-chain record of verified addresses. Vault shares can only be held by, and transferred between, whitelisted addresses. | ### Standards | Term | Definition | | ------------ | -------------------------------------------------------------------------------------------------------------------- | | **ERC-4626** | The tokenized vault standard, covering deposits, share accounting, and total assets. | | **ERC-7540** | The asynchronous extension to ERC-4626, covering the request → service → claim redemption flow that Qiro vaults use. |