# Glossary

## APR

Discounting fees added to the factoring fees percentage.

## Asset Buyer

An investor or buyer looking to purchase assets on the marketplace.

## Asset Category

A classification of assets based on similar characteristics (invoices, credit notes, purchase orders, merchant cash advances).

## Asset Custodian

An entity or institution holds and protects the assets on behalf of another party ensuring their security, proper documentation, and compliance with legal and regulatory requirements.

## Assets Listed

The number of assets currently listed on the marketplace.

## Average Asset Value

The average value of assets listed on the marketplace.

## Asset Originator

An asset creator; is someone who lists their assets on the RWA Marketplace and receives offers from Asset Buyers.

## Asset Owner

The current holder of the asset NFT.

## Asset Reference Number

A unique identifier assigned to an asset.

## Average Return

The average return on investment for assets listed on the marketplace.

## Credit Note

A document issued by a seller to a buyer to offset a previous invoice that has already been paid

## Dual-Layer Token (DLT)

DLT, or DualLayerToken, is a token standard that combines the functionalities of ERC20, ERC721, and ERC1155 while adding a unique layered structure (mainId and subId) for managing diverse asset types and their attributes.

## Due Date

The date by which the Asset Originator is obligated to repay the principal amount borrowed along with any accrued interest and fees to the Asset Buyer.

## Final Price

The total price of assets purchased multiplied by the platform fee percentage.

## Finance Tenure

The purchase date subtracted from due date for when the asset is scheduled to be repaid.

## Fractionalized Asset

A smaller division of an asset is also called a "fractional share". It is an ownership structure that allows multiple Asset Buyers to own a portion of the asset rather than buying the entire asset outright.

## Insurance Coverage

The percentage of a loss that will be covered by the insurance policy.

## Invoice

A document issued by a seller to a buyer, requesting payment for goods sold or services rendered.

## Loan Maturity

The length of time until which the Asset Originator is expected to fully repay the loan including any accrued interest and fees.

## Loss Pool

A reserve fund in the RWA Marketplace that covers the losses incurred due to defaults or delays in loan repayments.

## Merchant Cash Advance (MCA)

A form of financing to small businesses where a lender provides a lump sum payment to a business in exchange for a percentage of its future sales or revenue.

## My Holdings

Assets that the user currently owns.

## Payor

The party who owes or is obligated to make a payment to another party, known as the payee.

## Platform Fee

A charge imposed by the RWA Marketplace for using their services

## Purchase Order (PO)

A document issued by a buyer to a seller, indicating the buyer's intention to purchase goods or services.

## Real World Asset (RWA)

Tangible assets that exist in the physical world, which are brought on-chain.

## Return

The profit or gain generated from an investment over a specific period of time (a simple interest formula).

## Tenure

A measurement of the duration over which an asset is scheduled to be repaid.

## Total Asset Value Purchased

The total value of assets purchased on the marketplace (USD)

## Total Returns

The flat price of the asset added to the returns.

## Trust Score

A rating assigned to a Payor by Polytrade to indicate the level of reliability or worthiness they possess.