# 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. | --- # Agent Instructions: 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: ``` GET https://docs.extrafi.io/extrafi-xlend/glossary.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.