NAV (net asset value)
What one bond is actually worth to the protocol: the part of the DexFi treasury Recoup can price itself, plus the rest at DexFi's own figure less a 20% haircut, divided by bonds outstanding. It's the price all collateral and liquidation maths use.
LTV (loan to value)
Your debt as a share of what your collateral is worth. You can borrow up to 25% at launch; liquidation only starts above 50%, so there is a wide margin by design.
Health factor
The liquidation threshold divided by your current LTV. Below 1.00 the position can be auctioned, and the closer it sits to 1.00 the less room it has. It rises on its own as weekly yield pays the debt down.
DexFi Treasury Bond
A token issued by DexFi and backed by its on-chain treasury. It pays USDC most weeks, and that payout repays your loan. Recoup holds it as collateral and never sells it while your loan is healthy. DexFi redeems bonds manually, at 90% of NAV, 48 hours or more after you ask.
Collateral
What you lock up in order to borrow. Your bonds sit in Recoup's vault while you owe anything, and you can take them back once the debt reaches zero. Nothing else of yours is at stake.
Liquidation
What happens if your loan grows too large against your bonds. The whole position is sold as one lot, not just enough to clear the debt: the price starts at 100% of NAV and decays to 68% over 6 hours. The debt is repaid first, a 5% penalty comes from what is left, and the rest returns to you.
Liquidation deposit
A $25 deposit taken out of the borrow that first takes your debt to $500 or more. It is not added to what you owe. It pays whoever opens an auction on you only if the auction fills or moves to a workout, and is refunded when your debt reaches zero.
USDC
A dollar stablecoin, intended to be worth one US dollar each. It is what you borrow here, what bond yield is paid in, and what lenders supply.
Harvest
The weekly job that collects the yield the bonds have paid and splits it 55 / 25 / 10% between your debt, lenders and the insurance fund, with the rest to the protocol. It runs on its own.
Share price
USDC per pool share. It rises as the lender share of each weekly harvest lands in the pool, and falls if a shortfall is written down against it. In the pool as written for launch (the testnet pool is older), while a borrower is being liquidated there are two prices: you deposit at the pool's full value, and you exit at that value less the loss the pool expects from that position. So leaving first does not dodge the loss, and buying in does not buy a discount. Not fixed and not guaranteed.