> ## Documentation Index
> Fetch the complete documentation index at: https://docs.axiosfinance.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Glossary

> Key terms in Axios Finance

| Term                              | Definition                                                                                                                                          |
| --------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- |
| **APY (Annual Percentage Yield)** | The yearly return on an investment, accounting for compounding. A 10% APY means you earn 10% per year.                                              |
| **Blockchain**                    | A network of computers that maintains a shared, tamper-proof record of transactions. Think of it as a public ledger that no single person controls. |
| **Collateral**                    | Assets you put up as security for a loan. If you don't repay, the lender gets your collateral.                                                      |
| **DeFi (Decentralized Finance)**  | Financial services built on blockchains without traditional intermediaries like banks.                                                              |
| **Gas Fee**                       | The cost to execute transactions on a blockchain. These fees pay for computing power and network security.                                          |
| **Liquidation**                   | The automatic sale of collateral when a loan becomes unsafe. Protects lenders from losses.                                                          |
| **Liquidity**                     | How easily an asset can be converted to cash. High liquidity = easy to buy/sell. Low liquidity = hard to trade.                                     |
| **Oracle**                        | A service that provides external data (like prices) to smart contracts on the blockchain.                                                           |
| **Over-collateralized**           | Putting up more collateral value than you're borrowing. E.g., borrowing $10k with $15k collateral.                                                  |
| **P2P**                           | Direct transactions between two people without a middleman. Axios matches borrowers directly with lenders.                                          |
| **Smart Contract**                | Self-executing code on a blockchain. Like a vending machine - it follows rules automatically without human intervention.                            |
| **Stablecoin**                    | Cryptocurrency designed to maintain a stable value (usually \$1). Examples: USDC, USDT, DAI.                                                        |