Glossary

Amet Finance: A decentralized finance (DeFi) platform that specializes in issuing, managing, and trading on-chain bonds, providing users with a secure and efficient environment for bond-related transactions.

Fixed Flex (FF) Bond: A unique type of bond offered by Amet Finance that combines elements of fixed-income securities with the flexibility characteristic of DeFi, allowing for adjustable terms based on market conditions and issuer preferences.

NFT (Non-Fungible Token): A type of digital asset that represents ownership of a unique item or piece of content, such as an Amet Finance bond, using blockchain technology to establish verified and public proof of ownership.

Purchase Amount: The initial amount of capital that an investor commits to buying a bond, denominated in a specific cryptocurrency or token.

Purchase Token: The type of cryptocurrency or token used to purchase the bond.

Payout Amount: The amount the bondholder will receive upon the bond's maturity, which could be in a different token or cryptocurrency than the purchase token.

Payout Token: The type of cryptocurrency or token that the investor will receive as a return on their investment when the bond matures.

Maturity Period in Blocks: The duration until the bond's maturity, measured in blockchain blocks, after which the bondholder can redeem their payout.

Settled Contract: In the context of Amet Finance, a settled contract refers to a state where the bond issuer has finalized the terms of the bond issuance. Once a contract is settled, the issuer can only decrease the total number of bonds (Total Bonds) available. Furthermore, the necessary funds (or payout) required to fulfill the repayment obligations for all issued bonds are locked in the contract, ensuring that there are sufficient resources to cover the payouts at maturity. This mechanism enhances the security and trustworthiness of the bond for potential investors.

Issuer: The entity or individual responsible for creating and issuing the bond, committing to pay back the payout amount upon maturity.

Redeem: The action taken by the bondholder to exchange the bond for the payout amount after the bond has reached its maturity.

Yield or Yield Rate: The return on investment that a bondholder can expect to receive, often expressed as a percentage. This is crucial for understanding the profitability of a bond investment.

Secured Percentage: The percentage of the bond's payout that is stuck in the contract. This metric provides an indication of the bond's security level, as a higher secured percentage generally means less risk for investors. It reflects the proportion of the bond's payout that is guaranteed by tangible assets or capital, offering a measure of protection against issuer default.

Bond Score: A numerical rating assigned to each bond issued on the Amet Finance platform, calculated based on various factors such as the secured percentage, settled status, assets verification status, and yield rate. The bond score helps investors assess the relative risk and attractiveness of different bond offerings, aiding them in making informed investment decisions. It synthesizes complex data into a straightforward, easy-to-understand metric.

Issuer Default: Issuer default occurs when the bond issuer fails to fulfill their financial obligations specified in the bond terms. This can include failing to make timely interest payments or not returning the principal amount to bondholders upon maturity. In the context of Amet Finance, an issuer default would mean that the entity or individual who issued the bond on the platform is unable to repay investors as promised, potentially resulting in a loss of invested capital for those holding the bond.