An illustration of the Takaturn process
Terminology associated with Takaturn
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: 1 month
FUND
“Money Pot”
The cumulative pool of money that is contributed by participants in each cycle
Example: $1,000
Contribution
A predefined amount of money that is paid into the FUND contract 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.
Funding period
A predefined time fraction during the beginning of a cycle in which the participant is required to send their contribution. If the participant misses sending the contribution during this period, they will enter a defaulting state.
Example: 48 hours
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.
VAULT
The smart contract where the collateral amounts are sent
Collateral
“Security Deposit”
An amount held in the DAO VAULT contract equivalent 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 1.5 x $1,000 of ETH = $1,500 of ETH
TCR (Total Collateral Remaining)
The total amount of collateral (belonging to a participant) remaining in the VAULT, in ETH.
RCC (Remaining Cycle Contribution)
The total amount of remaining cycle contributions.
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 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 <1x the RCC.
Enrollment period
Length of time from the first collateral received to the closing of the DAO.
Example: 7 days
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