Glossary
- Lender: you. A person or business lending through Kasu.
- End Borrower: a business borrowing from a Credit Originator. Never an individual.
- Credit Originator: the specialist lending company that originates, assesses, services and enforces loans to End Borrowers, and holds the security over them.
- Institutional Lender: an institution holding the most senior position in a strategy under a subordination deed, where one exists.
- Lending Strategy: one Credit Originator's lending in one loan type; the unit you choose to lend to.
- Lending Option: a position in a strategy's Priority Ranking, with its own Effective Interest Rate.
- Priority Ranking: the order in which losses are borne within a strategy if End Borrowers default: the most junior option first, then Mezzanine, then the more senior options.
- Lending Request: your request to lend an amount to a Lending Option.
- Withdrawal Request: your request to have an amount of your loan returned to your Digital Wallet.
- Lending Amount: the amount you enter when making a Lending Request, before it is accepted.
- Loan Balance: the amount of your loan, including capitalised interest.
- Loan Currency: the stablecoin your loan is advanced and repaid in.
- Loan Agreement: the contract generated when you lend, which incorporates the disclosures shown to you in the app.
- Effective Interest Rate: the annual rate you earn with weekly compounding included and no fees deducted.
- Transaction Cycle: the weekly period in which requests are collected; it closes every Tuesday at 6:00 am UTC and requests are processed at its close.
- 48 hour processing period: the period after a cycle's close within which outcomes are confirmed.
- Queued / Processing / Completed / Cancelled: the four statuses a request can have.
- Digital Wallet: where your stablecoins sit before they are lent and after they are withdrawn.
- Add Funds / Transfer to Bank: moving funds from your bank or another wallet into your Digital Wallet, and from your Digital Wallet to your bank.
- Stablecoin: a digital token designed to track a currency one-to-one, such as USDC, which tracks the US dollar.
- Loan record (Token): the permanent record of your loan held in your Digital Wallet. Your Loan Agreement and your wallet software call it the Token. It cannot be sold or transferred.
- Opt in / Opt out: your choice, made in My Loans, of whether your funds are lent to the End Borrower named to you.
- Forced Withdrawal: a withdrawal initiated by Kasu or the Credit Originator rather than by you.
- Unrealised loss / Realised loss: a shortfall the Credit Originator expects but is still pursuing, and a shortfall confirmed once recovery efforts are exhausted.
- Security & Recourse: what the Credit Originator can claim if an End Borrower defaults.
- Structural Controls: mechanisms built into how a loan operates that reduce the risk of loss arising.
- Financial Covenants / Reporting Covenants: the financial limits an End Borrower must stay within, and the information it must provide, while a loan is outstanding.
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