Glossary

mTokens	Interest-bearing tokens received by users when they supply assets to Mana. mTokens represent the user’s share of the liquidity pool and accrue interest in real-time.
APY	Annual Percentage Yield, which is the yield/interest after a year, including compounding interest. This differs from APR, which does not account for compounding effects.
Collateral	An asset supplied to Mana to secure a borrowing position. The collateral must exceed the value of the borrowed amount to ensure the protocol's solvency.
Cooldown Period	A mandatory waiting period that stakers must observe before they can unstake their tokens from the Safety Module.
Flash Loan	A type of uncollateralized loan offered by Mana, which must be borrowed and repaid within one transaction block.
Governance Power	Refers to the ability to create proposals or vote in Mana’s governance system, based on MANA or stkMANA token holdings.
Health Factor	A ratio that determines the health of a user's loan position. It compares the value of the user's collateral to their borrowed assets. A health factor below 1 triggers liquidation.
Liquidation	The process that occurs when a borrower’s health factor drops below 1, resulting in the sale of collateral to repay part of the debt and bring the position back to a safer level.
Liquidation Bonus	The bonus provided to liquidators as an incentive to purchase undercollateralized assets in a liquidation event. It is expressed in percentage points.
Liquidation Threshold	The point at which a loan becomes eligible for liquidation due to insufficient collateral relative to borrowed funds. The threshold is defined per asset and determines the collateral value required to maintain a position.
Liquidity Index	Tracks the cumulative interest earned by a reserve over time, used to calculate accurate interest payments.
Loan To Value (LTV)	The maximum percentage of a collateral asset's value that can be borrowed. For example, an LTV of 75% means that for every 1 ETH of collateral, 0.75 ETH can be borrowed.
Oracle	A service used by Mana to fetch external data, such as the prices of assets, which is critical for determining the value of collateral and debt.
Ray units	A unit of measurement with 27 decimals, used by Mana for internal calculations to ensure precision, particularly for rates and exchange values.
Reserve Factor	A percentage of interest accrued by borrowers that is allocated to the Mana Treasury to help safeguard the protocol.
Risk Admin	An entity or automated system responsible for adjusting risk parameters in Mana without going through a governance vote. This allows Mana to respond quickly to unforeseen risks.
Safety Module	A staking mechanism where MANA tokens are staked to act as insurance in case of a shortfall event. Stakers earn rewards but are also exposed to slashing risk.
Utilization Rate	A metric that determines the proportion of borrowed assets to the total available assets in a reserve. A higher utilization rate indicates higher borrowing demand.
Voting Power	The amount of influence a user has in governance decisions, determined by the amount of MANA or stkMANA they hold.