Glossary
Plain-language definitions of Cusp's canonical terms.
One plain line per term. New terms are added here as pages introduce them.
Risk engine. The measurement layer that reads each market and publishes its eligibility, value, limits, and pricing. See risk engine.
Position standard. The versioned metadata object that makes a position legible to any underwriter. See position standard.
Conservative mark. The collateral price the engine uses: the most pessimistic of the midpoint, a trailing average, and executable depth, never the last trade.
Stress value. The value the engine will defend after applying haircuts to the conservative mark.
Health factor. The ratio of stressed collateral coverage to debt; liquidation becomes possible when it falls below 1.
Origination gate. The rule that stops new credit entirely near resolution.
Instant Redeem. Settlement financing that pays a holder for a resolved claim now and collects face value from the venue later. See Instant Redeem.
Settlement gap. The interval between a market resolving and the venue paying out.
Senior tranche. Vault capital with protected, lower-volatility income.
Junior tranche. Staked first-loss capital that absorbs losses first and earns the levered residual. See vaults.
Loss waterfall. The fixed order in which losses are absorbed: junior in full, then senior.
Launch bound. The launch rule capping total credit by first-loss capital, so senior capital cannot be impaired.
Bonded liquidator. A specialist who posts a bond to bid in liquidation auctions and is slashed for failing to settle.
Reserve price. The floor of a liquidation auction, covering debt, interest, fee, and a buffer. See liquidations.