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Terminology

Recurring terminology for ConvertibleBonds

ConvertibleBondBox (CBB) / Bond Box

The core contract that enables the repayment of the loan.

IBO Box

The core contract that facilitates the IBO (Initial Bond Offering) prior to activation of the CBB.

Activation

The process of "starting the clock" on the CBB. After reinitialization, the price of the SafeTranche on the CBB will linearly scale to $1 as a function of time.

BuyOrder

Created during the IBO by lenders. Executed after bond activation to receive BondSlips.

IssueOrder

Created during the IBO by borrowers/DAOs. Executed after bond activation to receive Loan + DebtSlips.

BondSlips

The IOU-Slip that is held by lenders. Redeemable for either StableTokens or the SafeTranche.

DebtSlip

The IOU-Slip that is minted to Issuers/Borrowers. Can be used to either repay the debt, or redeem the RiskTranche after maturity.

SafeTranche

Any non-Z Tranche of the underlying ButtonBond that represents a senior claim on the DAO collateral.

RiskTranche

The Z-Tranche of the underlying ButtonBond that represents a junior claim on the DAO collateral.

InitialPrice

The initial price of the SafeTranche. This corresponds to the interest rate of the zero coupon bond.

Owner

The address that owns the ConvertibleBondBox + StagingBox. It's the only address that can reinitialize the CBB.

InitialPrice

The initial price of the SafeTranche. This corresponds to the interest rate of the zero coupon bond. Assumed to be <$1.

Penalty

A ratio between 0 and 1 that is paid by the holder of the RiskSlip when they redeem their slip if they have not repaid their loan.