📚Glossary

An explanation of terms used in Ooki Protocol.

Term	Description
Ooki Protocol	The open set of smart contracts created by Ooki DAO enabling users to interact with products and services offered by Ooki DAO.
OOKI	The protocol native governance token of the Ooki Protocol that allows stakers to participate in Ooki DAO governance.
Leverage	Leverage is a trading mechanism investors can use to increase their exposure to the market by allowing them to pay less than the full amount of the investment. Consequently using leverage in a transaction, allows a trader to take on a greater position without having to pay the full purchase price.
Liquidation	Liquidation happens when an exchange closes out a trader's position because it can no longer meet margin requirements. Margin is the percentage of the total trade value that must be deposited with the exchange to open and maintain a position.
Margin	Margin is the money borrowed to purchase a token and is the difference between the total value of an investment and the loan amount.
Margin call	If the risk ratio falls below the minimum requirement for a particular asset to maintain the leveraged position, a trader will risk having their position liquidated. A margin call is a notification that additional collateral should be added to protect against liquidation.
Delegate	Owners of digital assets can do more than simply hold their assets in a wallet. One of their options is to delegate crypto tokens — a process of contributing them to an address and giving that address control over the tokens voting power.
Flash Loan	Flash Loans allow you to borrow any available amount of assets without putting up any collateral, as long as the liquidity is returned to the protocol within one block transaction. To do a Flash Loan, you will need to build a contract that requests a Flash Loan. The contract will then need to execute the instructed steps and pay back the loan + interest and fees all within the same transaction.
APY	APY is calculated on a yearly basis and shown as a percentage. APY, which stands for Annual Percentage Yield, is the rate you can earn on an account over a year and it includes compound interest.
APR	The Annual Percentage Rate (APR) is the cost you pay each year to borrow money, including fees, expressed as a percentage. The APR is a broader measure of the cost to you of borrowing money since it reflects not only the interest rate but also the fees that you have to pay to get the loan.