🔤Glossary

A

Account Overview A page within the FU Capital DApp that provides users with a summary of their profile activities, including funds deployed, assets held, and recent transactions. It serves as the main dashboard for managing deployed balances and monitoring portfolio performance.

AML (Anti-Money Laundering) A set of procedures, laws, and regulations designed to prevent the practice of generating income through illegal actions. FU Capital adheres to AML standards to ensure that all users and transactions on the platform are legitimate.

APY (Annual Percentage Yield) The real rate of return earned on deployed balances, taking into account the effect of compounding interest over time. In FU Capital, APY reflects the yield generated by holding and funding loan portfolios.

B

Buy-back Obligation A lender’s obligation to redeem and repurchase a claim from an assignee on the 61st (sixty-first) calendar day of delay if a borrower delays the loan repayment for more than 60 (sixty) calendar days in accordance with a loan agreement.

C

Community Governance A decentralized governance system within the FU Capital platform that allows FUT token holders to participate in decision-making processes, such as voting on platform updates, proposals, and other significant changes.

D

DApp (Decentralized Application) A type of application that runs on a decentralized network, utilizing blockchain technology. The FU Capital DApp allows users to manage their deployed balances, access market opportunities, and engage in community governance in a secure, transparent environment.

DCM (Debt Capital Markets) Financial markets where companies and governments raise funds by issuing debt securities such as bonds or securitised debt. FU Capital specializes in offering tokenized debt portfolios as passive income opportunities.

Deploying Funds In FU Capital, the term "deploying funds" refers to the process of funding loan portfolios or placing assets within the platform.

DvP (Delivery vs Payment) A settlement system that ensures the transfer of securities occurs only if the corresponding payment is made. This principle is embedded in FU Capital's smart contract system to secure transactions.

F

FUT (FU Token) The native utility token of the FU Capital ecosystem, used for governance, staking, transaction fees, and rewards. FUT plays a central role in the platform’s operations and community engagement.

L

Lender A business or individual that originates loans and lists these loan portfolios on the FU Capital platform for tokenization. Lenders are responsible for the underlying assets and are vetted by FU Capital for risk and return potential. Examples could include FinTech lenders, Private Debt funds and other financial institutions.

Loan Portfolio (LP) Tokens Tokens that represent fractional ownership in a loan portfolio. These tokens are created through the tokenization of debt and can be traded on the FU Capital platform, providing liquidity to lenders and passive income opportunities to users.

LP Reward Engine A feature within FU Capital that manages the distribution of returns from loan portfolios. This engine automates distribution of interest payments and principal repayment to holders of LP Tokens.

M

Market (Primary and Secondary) The two main areas within the FU Capital platform where users can add funds and trade LP Tokens:

• Primary Market: Where new loan portfolios are initially listed by lenders.

• Secondary Market: Where existing LP Tokens can be traded between users, providing liquidity and exit opportunities before maturity of underlying loans.

P

Portfolio A collection of loan portfolios and LP Tokens held by a user within the FU Capital platform. The portfolio section of the DApp allows users to monitor the performance and status of their funded assets.

S

Smart Contract Self-executing contracts with the terms of the agreement directly written into code. FU Capital uses smart contracts to automate the deployment of funds, manage returns, and ensure the security of transactions on the platform.

Staking The process of locking up FUT tokens in the platform to earn rewards, increase user level, and participate in governance. Staking helps secure the network and provides users with incentives to reward long-term engagement with FU Capital.

T

Tokenization The process of converting rights to an asset into a digital token on a blockchain. In FU Capital, tokenization allows loan portfolios to be fractionalized and traded as LP Tokens.

U

User KYC and AML A combination of processes (Know your Customer and Anti Money Laundering) that ensure all users of the FU Capital platform are verified and compliant with anti-money laundering regulations. This protects the platform’s integrity and secures its operations.

User Level System A ranking system within FU Capital that determines a user's access to certain features, benefits, and governance rights based on their activity and staking on the platform. These include reduced fees, increased deploy/withdraw limits and enhanced yields.

W

Withdraw Funds The process by which users can transfer their returns or principal from the FU Capital platform back to their cryptocurrency wallets.