# Glossary of Terms

**$USC**: $USC is a stable, overcollateralized cryptocurrency within the Cronos Ecosystem, maintaining a hard peg to the US dollar. It aims to function as a secure store of value, a means for transactions, and a unit of account for on-chain products, backed by more than a dollar's worth of collateral for each circulating $USC. \[Get $USC]

**CDCETH**: CDCETH is the first token accepted as collateral within Orby Network. It is essentially a receipt token representing your staked Ether (ETH) and any accrued staking rewards. Read the [official whitepaper here](https://crypto.com/document/cdceth_whitepaper).

**CDCBTC**: cdcBTC is a token backed 1:1 by native Bitcoin (BTC), with the underlying BTC securely held in cold storage under Crypto.com’s custody. Read the whitepaper [here](https://crypto.com/document/cdcbtc-whitepaper.pdf).

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**LCRO**: LCRO is a liquid staking token that represents staked CRO through Veno. It is a yield-bearing, auto-compounding asset, allowing users to passively earn staking rewards. Read more [here](https://crypto.com/en/product-news/crypto-com-app-lists-liquid-cro-lcro).

**CRO**: CRO is the native token of the Cronos chain. Read more [here](https://crypto.com/price/cronos).

**Fees**: Orby Protocol implements transaction fees which are applied to borrowing and redemptions. Every time new $USC is minted, users will incur a variable borrowing fee. Similarly, a variable redemption fee is charged every time the Redemption feature is used. There are no other fees charged on Orby. 

**Shuttle**: A shuttle is similar to a collateral debt position (CDP), and is a segregated account where a user goes to create and maintain his loan. Each type of accepted collateral will have its own shuttle.<br>

**Borrowing Fee**: a variable fee calculated as borrowing\_amount \* (BASE\_RATE + 0.5%), with a maximum cap of 5%. These fees are applicable during regular operating conditions (i.e. Normal Mode).<br>

**Borrowing Fee (during Recovery Mode)**: Set at 0% to encourage borrowing.<br>

**Repayment Fee**: There is no fee for debt repayment.<br>

**Redemption Fee**: a variable fee calculated as redemption\_amount \* (BASE\_RATE + 0.5%), capped at a maximum of 5%. These fees apply when users use the Redemption feature.<br>

**Liquidation reserve**: Amount set aside as gas compensation in event of a liquidation. The reserve is currently set at 20 $USC.  This reserve is otherwise not payable by the user and is burnt upon shuttle closure.<br>

**Collateral ratio**: Defined as the dollar amount of collateral relative to the dollar amount of debt

**Min collateral ratio per shuttle (MCR)**: The minimum level the collateral ratio must be maintained at to avoid liquidation. It varies based on the collateral type.<br>

**Minimum debt per shuttle**: The minimum amount of debt needed to keep the shuttle open. This minimum borrow amount is currently set at 100 $USC.<br>

**Liquidation penalty**: The percentage of collateral a liquidator will earn from liquidating a shuttle.

**Collateral Details**: Status monitors the Total Collateral Ratio (TCR) of each respective collateral in Orby’s ecosystem.\
Status is broken into 3 modes (Normal, Caution, Recovery), which vary depending on collateral. For example, the TCR for cdcETH is 150%. In such a case:

| Parameters for cdcETH collateral | TCR Amount %      |
| -------------------------------- | ----------------- |
| Recovery Mode                    | TCR < 150         |
| Caution                          | 150% < TCR < 190% |
| Normal                           | 190% > TCR        |

**Total Collateral Ratio (TCR)**: total dollar value of the respective collateral / total dollar value of the corresponding debt

TCR is collateral specific.

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**Min collateral ratio (MCR) per shuttle**: The minimum level the collateral ratio must be maintained at to avoid liquidation. It varies based on the chosen collateral type.

**Liquidation penalty:** The percentage of collateral a liquidator will earn from liquidating a shuttle. The penalty is currently set at 0.5% of a liquidated user’s total collateral

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