Glossary

Intersect DeFi Glossary

Borrowing: The act of obtaining assets from the protocol, secured by deposited collateral.

Borrowing Limit: A configurable ceiling on the total amount of a specific asset that can be borrowed, based on market liquidity and overall borrowed volume.

Collateral: Assets deposited as security for loans, subject to forfeiture if the loan is liquidated.

Leveraged Position: A financial arrangement created by depositing assets in the protocol's smart contract and using it as collateral to borrow other assets.

Decentralized Lending Platform: A permissionless financial system operating without intermediaries, facilitating lending and borrowing to enhance capital mobility.

Efficiency Mode (E-Mode): A feature allowing price-correlated assets (such as stablecoins) to be grouped for improved capital utilization.

Health Factor: A ratio indicating the safety of a loan, calculated using collateral value, liquidation thresholds, and borrowed amount. A value below 1 indicates risk of liquidation.

Restricted Asset Mode: A setting that confines borrowing to specific stablecoins and limits collateral to a single designated asset.

Lending: Providing assets to the protocol to generate interest income.

Collateralization Ratio: The maximum borrowing capacity of a given collateral, expressed as a percentage.

Forced Closure: The process of closing a position when its collateralization falls below the required threshold, triggered automatically by the protocol.

Liquidation Incentive: A reward offered to encourage rapid liquidation of under-collateralized positions, specified per asset type.

Liquidation Boundary: The point at which a borrowed position becomes under-collateralized and eligible for liquidation, defined per collateral type.

Position Closer: An entity that can initiate the liquidation of under-collateralized positions, receiving a portion of the collateral as compensation.

Asset Generation: The process of creating new protocol-specific tokens in an over-collateralized manner.

Intersect: The decentralized, non-custodial lending platform on Neo X, enabling users to lend, borrow, or participate in liquidations without intermediaries.

Excess Collateralization: A requirement that the value of deposited collateral exceeds the borrowed amount, with positions at risk of liquidation if the ratio falls too low.

Single-Asset Restriction: A mode limiting users to borrowing only one specific asset at a time.

Supply Ceiling: A configurable limit on the total amount of an asset that can be supplied to the protocol, based on market conditions and total collateral volume.