Glossary

Term
Definition

Annual Percentage Yield (APY)

This is the yield (represented in APY terms) that vault creators offer to subscribers in the vault.

The APY Represents the annual return equivalent obtained by consistently purchasing the product at the specified yield throughout an entire year. APY formula: Yield / (Expiry Date - Today ) x 365

Linked Price

The Linked Price is the target price for buying or selling a token asset in a Dual Investment vault, set by the Vault Creator.

The linked price serves as the trigger for a potential token swap at the vault’s expiration.

If the market price of the asset reaches or exceeds the Linked Price at expiration, a swap occurs between the Investment Token (provided by the Subscriber) and the Linked Token (provided by the Vault Creator).

If the Linked Price is not reached, no swap happens.

Investment Token

The Investment Token is the token that a user deposits when he subscribes to a vault.

Linked Token

The Linked Token is the token that the Subscriber will receive if the Linked Price is reached, and a swap happens.

Buy Low Vault

Buy Low Vaults allow vault subscribers the opportunity to buy the linked Token at a lower price in the future.

Subscribers deposits stablecoins as an investment token.

Sell High Vault

Sell High Vaults allows vault subscribers to the opportunity to sell their investment token at a higher price in the future.

Subscribers deposits token X (eg: WETH) as an investment token.

Deposit

The token that users deposit when they subscribe to a vault.

Direction

This refers to the strategy of the vault, which is either of the following: 1. Buy Low Vault

2. Sell High Vault

Expiry/Expiration Date

The date on which the vault expires. All vaults on a given date expire at UTC+08:00.

Vault creator

A vault creator, also known as the liquidity provider (LP), is a firm or individual who provides the liquidity and creates a vault.

Vault subscriber

A Vault Subscriber is a user who deposits investment tokens into a Dual Investment vault to participate in its strategy.

Depending on the vault strategy (Buy Low or Sell High), the Subscriber contributes the Investment Token for a chance to buy the Linked Token at or below the Linked Price (Buy Low) or sell their investment token at or above the Linked price (Sell High) upon the vault’s expiration.

Vault Subscribers earn yields on their deposits regardless of whether the target Linked Price is reached.

Market Price at Expiration

The first valid oracle price of Ethereum within the last 1 minute after 16:00 UTC+8 on the Expiration Date. This price is used to determine the vault's settlement state based on the vault's parameters.

Market Price at Subscription

The market price of Ethereum at the time when a user subscribed to a vault.

Price Oracle

A price oracle is a source of price data streamed onto the blockchain. ProdigyFi uses Chainlink and Pyth Network to obtain accurate real-time asset prices.

Quantity

The maximum deposit size for the Investment Token for a vault. This is set by the Liquidity Provider.

Remaining quantity

The Remaining Quantity is equal to or less than the [maximum] Quantity set for the vault based on whether or not there have been subscriptions to the vault.

Yield

The rewards earned for depositing into a vault. Reward formula: Subscription Amount * APY

Smart Contract

Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. They typically are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss. They can also automate a workflow, triggering the next action when conditions are met.

Subscription Date

The date and time when a subscription to a vault was accepted.

Subscription Deadline

The date and time when the vault stops accepting new subscriptions.

Vault ID

The unique ID for a given vault.

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