> ## Documentation Index
> Fetch the complete documentation index at: https://docs.drakewell.fi/llms.txt
> Use this file to discover all available pages before exploring further.

# Glossary of Drakewell terms

> Standard definitions for the terms used across the Drakewell docs, including credit vaults, the fixed rate, collateral, the floor and epochs.

Every Drakewell page uses the definitions below, word for word. When a page mentions one of these terms, it means exactly what this glossary says.

## USDdw terms

| Term | Definition |
| - | - |
| Credit vault | A vault through which USDdw accepts capital at a fixed rate, either on a partner venue or run by Drakewell. |
| Fixed rate | The rate set per vault for its term. Shown live, never promised. |
| Market-neutral | Strategies designed not to depend on market direction. |
| Delta-neutral | A position hedged so that moves in the price of the underlying asset have little effect on its value. |
| Basis trade | A position that holds an asset and shorts its future or perpetual contract, to earn the price difference or funding between them. |
| Arbitrage | Trading the same or closely related assets across markets to capture price differences. |
| Over-collateralized private credit | Private loans secured by collateral worth more than the amount lent. |
| Share price | The value of one USDdw in USDC, read onchain. It rises as the vault accrues interest. |
| Venue | The protocol or platform that hosts a credit vault, such as Accountable or Venzo. |

## SPYdw terms

| Term | Definition |
| - | - |
| Collateral | The assets backing SPYdw, across its SPY exposure, its yield, and its hedge. |
| The floor | The value of the collateral that stays in place while the options run. |
| The hedge | The S\&P 500 call options SPYdw holds to manage its exposure to SPY. |
| Option ladder | Options bought on a regular schedule with staggered 12-month expiries. Cadence goes from quarterly to monthly. |
| Epoch | The window in which deposits and redemptions are processed. Up to 7 days. |
| Early-exit fee | A fee on redemptions made before the end of an epoch. |

## Shared terms

| Term | Definition |
| - | - |
| Proof of reserves | Live reserve data published by Drakewell. |
| Onchain | Recorded on a public blockchain and verifiable by anyone. |
| S\&P 500 | The S\&P 500 index. SPY refers to the ETF that tracks it. |


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