Terminology

Mini DAO “Turn Group”	Each instance of a cooperative loan that individuals participate in. Example: A $1,000 Mini DAO
Participants “Members”	The individuals who are contributing to the mini DAOs, as represented by their public key/address. Example: 10 participants
Term	The length of time for the collective repayment of the loan, divided into cycles Example: 10 months
Cycle	The term is divided into cycles. Participants make contributions to the fund once per cycle. Example: 30 Days
FUND “Money Pot”	The cumulative pool of money that is contributed by participants in each cycle Example: $1,000 in USDC
Frozen Money Pot	Resulting from, collateral security (ETH) v Remaining Cycle contributions (RCC) < 1.1 times Example: Member 4 holds 0.10 ETH @ $2000 = 200 USDC and their RCC is 250 USDC. RCC multiple = collateral val/RCC = 0.8 times. In this case Member 4’s Money Pot will be frozen when it is their turn to be beneficiary.
Contribution	A predefined amount of money that is paid into the FUND instance by each participant during each cycle. Contributions are made in USDC. Example: Total contribution amount is $1,000 in USDC. Monthly contribution amount is $100 in USDC.
Beneficiary “Turn Champion”	The participant who receives the total contribution amount or “money pot” in each cycle. Each participant can only be a beneficiary once in each term.
Collateral “Security Deposit”	An amount held in the DAO VAULT contract equivalent to up to 1.5 x (the total contribution amount less previously contributed amounts). Collateral is held in ETH. Example: At DAO creation, the collateral amount each participant sends to the vault is up to 1.5 x $1,000 of ETH = $1,500 of ETH. Depending on their turn to collect the money pot, each subsequent participant sends, an algorithmically calculated, reducing amount of ETH to the vault, eg. 2nd=0.14ETH, 3rd=0.13ETH, 4th=0.12ETH and so on.
Enrollment period	Length of time from the first collateral received to the closing of the DAO. Example: 7 days
CL (Collateral liquidated)	The amount of collateral liquidated to make a missed cycle contribution.
Over collateralization	A state in which the amount of collateral in the VAULT is 1.1x to 1.5x the RCC.
Excessive collateralization	A state in which the amount of collateral in the VAULT is >1.5x the RCC.
Under collateralization	A state in which the amount of collateral in the VAULT is 1.0x the RCC.
RCC (Remaining Cycle Contribution)	The total amount of remaining cycle contributions.
Risk Exposure	The extent to which the turn group is exposed, in USDC, to 1 or more participants in case of default at the beginning of a cycle. Calculated at the beginning of the term and related to collateral. Example: Daniel defaults after having been beneficiary in cycle 1. Daniel collected the money pot of 150 USDC and defaulted in cycle 2. If he defaults in the further 2 cycles to come, had there been no collateral, the group risks losing 300 USDC so their risk exposure is 300 USDC.