> For the complete documentation index, see [llms.txt](https://docs.lendsprotocol.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lendsprotocol.com/start-here/glossary.md). # Glossary #### Accrued fee The leUSD stability fee that has accumulated on a borrowing position. It increases the amount required for full repayment and affects health. #### Bad debt Debt remaining after liquidation proceeds and insurance are insufficient. Future realized revenue is used to repair bad debt before normal revenue distribution, and some user actions are restricted while bad debt exists. #### Borrow LTV The maximum percentage of collateral value that can be borrowed as oUSD. #### Borrower surplus Value returned to a borrower when liquidation proceeds exceed the amount required by the settlement rules. It is returned as oUSD. #### Collateral An asset deposited to secure a loan. In LENDS, supported tokenized stocks and funds serve as collateral. #### Cooldown The waiting period between requesting a soUSD unstake and becoming eligible to complete it. The configured default is seven days. #### Health factor A measure of liquidation-adjusted collateral relative to debt. A LENDS borrow position becomes eligible for liquidation at or below 100%; a higher value means more room. #### Insurance fund An oUSD-denominated protocol reserve used to absorb eligible liquidation shortfalls before bad debt is recorded. #### $LENDS The project's planned ecosystem token. It is designed to use a 5% buy/sell fee, revenue-funded buybacks, and future staking, governance, and licensing-revenue utility. #### Liquidation The process that reduces or closes an unsafe borrow position by selling collateral and settling debt. #### Liquidation penalty Additional collateral value targeted during a liquidation. The configured default is 8%. #### Liquidation price The estimated collateral price at which a position's health factor reaches 100%, assuming other position values and parameters remain unchanged. #### leUSD The LENDS stable asset. It can be borrowed against stock collateral or minted 1:1 against USDG deposited through the PSM. #### PSM Peg Stability Module. The protocol facility that converts USDG and oUSD at a target 1:1 rate when caps, liquidity, and safety conditions allow. ## soUSD The receipt token for staked oUSD. Each share represents a proportional claim on the oUSD managed by the staking vault. #### Stability fee The annualized fee charged on outstanding oUSD debt. The configured default is 1.50% APR. #### Tokenized stock An onchain token that references a stock, ETF, or similar market asset. Its legal rights, custody, transfers, and redemption depend on its issuer. #### USDG The reserve stablecoin used by the PSM. USDG deposited through the PSM backs the matching amount of PSM-issued oUSD. #### Vault or position One wallet's collateral and debt for one supported market. Positions are isolated by collateral market. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.lendsprotocol.com/start-here/glossary.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.