# Glossary

| Name                  | Description                                                                                                                                                                                                                   |
| --------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| eTokens               | Interest-bearing tokens received by users when they supply assets to Xlend. eTokens represent the user’s share of the liquidity pool and accrue interest in real-time.                                                        |
| Supply Cap            | A limit set on the total amount of a particular asset that can be supplied to the Xlend protocol.                                                                                                                             |
| Borrow Cap            | A limit set by Xlend Governance on the maximum amount of an asset that can be borrowed from the protocol. This helps manage exposure and risk associated with each asset.                                                     |
| Collateral            | An asset supplied to Xlend 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.                                                                                                             |
| Isolation Mode        | A feature in Xlend that limits borrowers to borrowing only certain stablecoins when using assets marked as isolated. It helps mitigate risk by restricting the total debt exposure to a single asset.                         |
| Debt Ceiling          | The maximum amount of debt that can be issued against an isolated asset. Used to limit the risk exposure to a single collateral type.                                                                                         |
| E-Mode                | Efficiency Mode allows borrowers to extract higher borrowing power when using correlated assets (e.g., stablecoins).                                                                                                          |
| 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 Xlend to fetch external data, such as the prices of assets, which is critical for determining the value of collateral and debt.                                                                             |
| Reserve Factor        | A percentage of interest accrued by borrowers that is allocated to the Xlend Treasury to help safeguard the protocol.                                                                                                         |
| Risk Admin            | An entity or automated system responsible for adjusting risk parameters in Xlend without going through a governance vote. This allows Xlend to respond quickly to unforeseen risks.                                           |
| 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.                                                           |