Glossary
Clear definitions for every complex term on our site.
A
AML (Anti-Money Laundering): Laws and procedures designed to prevent the use of financial systems for money laundering or terrorist financing.
B
Best Execution Model: A framework ensuring client trades are executed at the most favorable terms available, minimizing slippage and protecting investors.
C
Collateral: Assets pledged to secure a financial position, often used in lending or settlement.
CNAD (Comisión Nacional de Activos Digitales): The regulatory authority in El Salvador supervising digital asset issuances and compliance.
Custodian: A regulated institution safeguarding the underlying real-world assets.
D
DASP (Digital Asset Service Provider): Licensed entities authorized to operate exchanges, custody, or distribution of regulated digital assets.
K
KYC (Know Your Customer): Regulatory process of verifying client identity before allowing financial transactions.
L
Liquid Network: A Bitcoin Layer-2 sidechain developed by Blockstream, designed for fast, confidential, and secure settlement of digital assets.
N
NAV (Net Asset Value): The per-token value of underlying assets minus liabilities and fees, calculated daily.
O
OTC Desk (Over-the-Counter Desk): A regulated primary market service enabling direct subscriptions and redemptions outside public order books.
P
Proof of Reserves (PoR): Cryptographic or audited evidence showing that an issuer holds the assets backing its tokens.
R
Redemption: The act of exchanging tokens back for the underlying asset or cash equivalent.
RID (Relevant Information Document): A regulated disclosure document required under El Salvador’s Digital Asset Issuance Law, equivalent to a term sheet or prospectus.
S
Self-Custody: Holding digital assets directly in one’s own wallet, rather than with a custodian.
Serial Issuer: A regulated entity authorized to launch multiple digital asset products under the same legal framework.
T
T+1: Settlement cycle where trades are finalized one business day after the transaction date.
Tokenization: The process of converting rights to an asset into a digital token on blockchain.
Transfer: The process of moving digital assets from one wallet to another within the blockchain network.
W
“What you see is what you get” pricing: Transparent execution where fees and pricing are disclosed upfront with no hidden costs.
Whitelisted Wallet: A digital wallet address approved through KYC/AML checks, authorized to receive and redeem regulated tokens.
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