# Glossary Quick definitions for terms used across the ksUSD docs. *** ## Product | Term | Definition | | --------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **ksUSD** | The bidirectional-carry dollar share token. 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 Drift funding, jitoSOL staking, and lending carry under one share token — three regimes 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 | | ----------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------ | | **Idle** | No active perp position; capital in vault USDC (possibly lent on Kamino via `lend_idle_usdc`). | | **Normal basis** | Long jitoSOL on Drift as cross-margin + short SOL-PERP at 1× notional. Active when funding sustainedly positive. | | **Reverse basis** | USDC on Kamino → borrow jitoSOL → sell to USDC → long SOL-PERP on Drift. Active when funding sustainedly deeply negative. | | **WindDown** | Terminal 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`. | | **Drift User / UserStats** | Drift sub-account PDAs owned by the vault. Created by `enable_drift`. | | **Kamino obligation** | Vault's Kamino obligation account. Created by `enable_reverse`. | | **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 | | ----------------------- | ----------------------------------------------------------------------------------------------------------------------------------- | | **Drift Perps v2** | On-chain perp DEX with real bidirectional funding. SOL-PERP market index = 0. | | **Kamino KLend** | Lending protocol: source of the jitoSOL borrow leg in reverse basis, AND 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** | **\~11% net** after fees, jitoSOL's \~80% Drift collateral weight, and rebalance slippage not in the model. Methodology and full breakdown: [historical-simulation.md](/reference/historical-simulation.md). | | **Daily backtest** | Daily resolution on real Drift SOL-PERP funding (Nov 2022 – Jan 2025) + Binance × empirical-ratio fallback elsewhere. 4.25-year hybrid window Feb 2022 – Apr 2026. | | **Empirical Drift/Binance ratio** | Calibrated from 22 overlap months: positive funding 2.37×, negative funding 0.10×. 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