> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fiet.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Glossary

> Key terms and definitions used throughout the Fiet Protocol documentation

| Term                                       | Definition                                                                                                                                                                      |
| ------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Automated Market Maker (AMM)**           | A smart contract facilitating token swaps in a decentralised exchange using predefined price curve algorithms, supported by liquidity pools.                                    |
| **Blockchain**                             | A decentralised, tamper-resistant digital ledger for recording transactions across a distributed network, ensuring security and transparency.                                   |
| **Cryptographic Proofs**                   | Verifiable computations, such as zero-knowledge proofs or MPC-TLS proofs, ensuring data integrity and privacy in Fiet's operations, like VRL verification or settlement intent. |
| **Data Portability**                       | The ability to securely transfer verified data, such as VRL state, across Market Chains using cryptographic signatures (e.g., tECDSA).                                          |
| **Decentralised Exchange (DEX)**           | A peer-to-peer trading platform for digital assets, operating without intermediaries and typically powered by AMMs.                                                             |
| **Fiet DAO**                               | The planned decentralised governance body for the Fiet Protocol, managing technical parameters and treasury post-(FIET) token launch.                                           |
| **Fiet Markets**                           | AMM-based trading pools in the Fiet Protocol, pairing LCCs to facilitate secure and efficient token swaps.                                                                      |
| **Fiet Prover**                            | A zkTLS Prover, built with Verity, that generates zkTLS proofs for data verification, supporting VRL, VTS, and settlements.                                                     |
| **Impermanent Loss**                       | Losses faced by liquidity providers in AMM pools due to price volatility and pool rebalancing, impacting returns.                                                               |
| **Liquidity Commitment Certificate (LCC)** | A synthetic, non-transferable asset in Fiet Markets representing MMs' VRL commitments, traded exclusively on Fiet's DEX.                                                        |
| **Market Maker (MM)**                      | A participant facilitating liquidity for Fiet Markets, committing VRL and managing settlements, incentivised by rewards and fees.                                               |
| **Market Chain**                           | A blockchain network integrated with Fiet Markets, where VRL state is syndicated and verified for cross-chain operations.                                                       |
| **Merkle Tree**                            | A cryptographic data structure organising VRL state in a verifiable compute environment, enabling efficient validation across Market Chains.                                    |
| **Proof of Settlement**                    | A cryptographic proof demonstrating an MM's intent to settle liquidity, used to extend grace periods during RfS processes.                                                      |
| **Request for Settlement (RfS)**           | A condition triggered when additional liquidity is needed, managed by Fiet's VTS manager.                                                                                       |
| **Rehypothecation**                        | The reuse of committed liquidity across multiple markets or platforms, adapted in Fiet to optimise capital efficiency while managing settlement risks.                          |
| **Settlement Guarantor**                   | A participant (MM or bot) settling an MM's RfS obligation, seizing their liquidity position for profit, incentivised by collateral.                                             |
| **Threshold-ECDSA (tECDSA) Signatures**    | Decentralised signatures in zkTLS system, signing VRL state updates for secure cross-chain syndication.                                                                         |
| **Universal Rewards Distributor (URD)**    | A Fiet Protocol component enabling weekly reward claims for user activities (e.g., market making, trading).                                                                     |
| **Value-to-Signal (VTS) Model**            | A mechanism calculating the ratio of settled to committed liquidity, driving settlement triggers.                                                                               |
| **Verifiable Compute Environment**         | A secure platform, such as the Internet Computer, processing zkTLS proofs and managing VRL state in Fiet.                                                                       |
| **Verified Reserve Liquidity (VRL)**       | Off-chain liquidity committed by MMs, verified via Verity's zkTLS system, enabling capital-efficient market making.                                                             |
| **Zero-Knowledge Proofs**                  | Cryptographic methods allowing data verification (e.g., reserve liquidity) without revealing sensitive details, ensuring privacy and security.                                  |
| **zkTLS**                                  | Zero-knowledge Transport Layer Security proofs, verifying private financial data for Fiet's operations.                                                                         |