> For the complete documentation index, see [llms.txt](https://docs.keystonefi.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.keystonefi.xyz/glossary.md). # Glossary Quick definitions for terms used across the ksUSD docs. *** ## Product | Term | Definition | | --------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **ksUSD** | The carry-backed dollar share token that earns from funding, lending, and staking. Share price drifts up as carry accrues. | | **Vault** | The single Anchor program + PDA that holds NAV, mints ksUSD, and runs strategy. | | **Coordinates carry** | Public-facing framing: ksUSD captures Phoenix funding, jitoSOL staking, and lending carry under one share token — addressed by one vault. | | **Effective NAV** | `cached_nav_usdc − queue_pending_usdc − reserve_fund_usdc`. The share-price denominator basis. | | **Share price** | `effective_nav_usdc × 1e6 / total_shares` (scaled 1e9). What 1 ksUSD redeems for in USDC. | | **HWM** | High-water-mark share price. Performance fees apply only above this mark; it ratchets monotonically. | | **Reserve fund** | USDC pool funded by the 5% perf-fee skim. Productively lent on Kamino; absorbs first-loss events. Tracked as `reserve_fund_usdc` (includes the lent portion). | ## Modes (`PositionMode`) | Term | Definition | | ---------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Parked** | No active perp position; capital in vault USDC (lent on Kamino via `lend_idle_usdc`). The negative/thin-funding default. (Enum variant: `Idle`.) | | **Normal basis** | Long jitoSOL spot held unlevered (staking) + short SOL-PERP on Phoenix at 1× notional with USDC margin. Active when funding clears the dynamic threshold plus a ±3% hysteresis band (≈0% typical; on-chain floored so the vault never shorts into negative funding). | | **WindDown** | Terminal governance mode (`init_wind_down`). New deposits / positions blocked; users redeem pro-rata via `claim_wind_down`. | | **Dwell** | Minimum time the vault must stay in a mode before switching again (default 12 h). | | **Funding EMA** | On-chain smoothed funding rate (`funding_apr_smoothed_bps`); updated on every `settle`. Compared against `funding_threshold_*_bps` for mode decisions. | ## Withdrawal | Term | Definition | | ---------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------ | | **Liquidity buffer** | Idle USDC the vault holds for instant withdrawals (default 10% of NAV). | | **Instant withdrawal** | `withdraw_instant` — one-transaction redemption out of the buffer. | | **Queued withdrawal** | `request_withdrawal` (burns shares, locks price) followed by `process_withdrawal` (permissionless crank, pays out USDC, closes the request PDA). | | **Queue cursor** | `queue_next_id` / `queue_processed_through` on the vault — track outstanding requests. | ## On-chain accounts | Term | Definition | | -------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------- | | **Vault PDA** | Seeds `[b"vault"]`. Signs all token operations. Authority of the ksUSD mint and every vault-owned ATA. | | **WithdrawalRequest** | Per-request PDA at `[b"withdrawal_request", vault, request_id]`. Closed on `process_withdrawal`. Strict FIFO via `queue_processed_through`. | | **Reserve ATA** | Vault-PDA-owned USDC ATA dedicated to the reserve fund (`vault.reserve_ata`). Pinned at `initialize`. | | **Phoenix trader account** | Phoenix Perps trader/subaccount PDAs owned by the vault (onboarded via the Rise SDK builder path). Created by `enable_phoenix`. | | **Kamino lending cTokens** | `vault_lend_collateral_ata` (idle-USDC leg) and `reserve_lend_collateral_ata` (reserve leg). Both pinned by `enable_lending`. | ## External protocols | Term | Definition | | ----------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Phoenix Perps** | On-chain perp DEX (Ellipsis Labs) with real two-sided funding; the v1 hedge venue. USDC margin posted via the **Ember** program; integrated by on-chain CPI (Rise SDK). Program `EtrnLzgbS7nMMy5fbD42kXiUzGg8XQzJ972Xtk1cjWih`. | | **Ember** | Program that routes USDC → Phoenix perp margin. Program `EMBERpYNE6ehWmXymZZS2skiFmCa9V5dp14e1iduM5qy`. | | **Kamino KLend** | Lending protocol: the USDC lending venue (`lend_idle_usdc`, `lend_reserve`). | | **Marginfi** | Reserved as a v1.1 second USDC lending venue. Vault fields pinned; not yet CPI-wired. | | **Jupiter V6** | Token swap aggregator. All USDC ↔ jitoSOL routing goes through it. | | **Pyth (pull oracles)** | Oracle source for SOL/USD + jitoSOL/USD. Staleness (5 min) + confidence (2%) checks gate every read. Pinned via `set_oracles`. | | **Jito (jitoSOL)** | Liquid-staking token. Yield = base inflation + MEV tips embedded in the jitoSOL/SOL rate. | ## Off-chain | Term | Definition | | ----------- | --------------------------------------------------------------------------------------------------------------------------------------------- | | **Keeper** | Off-chain process that cranks the permissionless strategy instructions on a schedule. | | **Cranker** | Generic term for any signer paying for a permissionless instruction. Anyone can crank `settle`, `process_withdrawal`, `emergency_close`, etc. | | **Admin** | Holder of the admin keypair. Privileged for `set_pause`, `update_params`, `transfer_admin`, `collect_fees`. End-state is a multisig. | ## Backtest | Term | Definition | | ------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | **Target APY** | Regime-dependent. The number to read first is the **−0.3% max drawdown** through the 2025–26 funding compression. Yield is **\~5% net** in a thin-funding regime like today (up to \~11% when funding is rich), fully loaded: already net of the 20% performance fee, the perp-margin haircut (the share of capital held as margin, which doesn't earn the basis), and trading costs, all baked into the backtest. Phoenix pays \~0% funding right now, so the vault sits near its \~4% USDC-lending floor and adds funding on top. Methodology and full breakdown: [historical-simulation.md](/reference/historical-simulation.md). | | **Daily backtest** | Daily resolution on historical SOL-perp funding, used as a **proxy** for Phoenix funding (Phoenix launched Dec 2025). Phoenix anchors its funding to CEX index feeds, so the proxy uses Binance funding at face value (×1.0). 24-month window Jul 2024 – Jun 2026. Reflects the v1 live mode set (normal basis + parked). | | **Funding proxy** | Binance funding taken at face value (×1.0), on the premise that Phoenix prices funding off CEX index feeds. The old Drift/Binance ratio (2.37× on positive months) ran hot and produced the earlier \~9% figure; the honest CEX-anchored number is \~5% net. |