| Term | Meaning |
|---|---|
| Bridge loan | A short-term loan that carries a borrower until a sale, refinancing or other planned exit |
| Cell (segregated portfolio) | A legally separate portfolio inside the SPC. Each Shores vault is its own cell |
| Exempted SPC | A Cayman Islands segregated portfolio company that keeps each portfolio’s assets and liabilities separate |
| First lien | The senior registered claim on a property. It is paid before any other lender if the property is sold to cover the debt |
| First-loss reserve | A reserve built from protocol fees that absorbs loan losses before they reach NAV |
| High-water mark | A rule that stops a performance fee being charged twice on the same gains |
| Hurdle | The return depositors must receive before a performance fee applies |
| Impairment | A write-down of a loan’s carrying value when full repayment is in doubt |
| Lockup | The initial period after minting during which new shUSD cannot be sold |
| LP (liquidity provider) | A party that supplies shUSD and other assets to a secondary-market pool |
| NAV | Net asset value per shUSD: the vault’s assets, less liabilities, divided by shUSD outstanding |
| Origination points | An upfront fee paid by the borrower when a loan is funded, as a percentage of the loan |
| Permission manager | The contract that lists the addresses allowed to mint and stake shUSD |
| Points | Activity-based rewards for staking, planned to convert to SHORES on terms to be announced |
| Proof of reserves | Evidence that the offchain loan book backs the vault’s reported NAV |
| Servicer | The party that collects payments, monitors the loan and manages enforcement |
| SHORES | The planned protocol token, issued by the Shores Foundation |
| shUSD | The Shores vault token. It represents a share of a vault |
| Staking | Locking shUSD in the staking contract to receive the monthly cash yield |
| TGE | Token generation event: when SHORES is created and distributed. Planned for 24–36 months after launch |
Glossary
Terms used across the Shores docs.
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