# 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.