E - H
E – H
E
Eligibility Criteria Predefined rules used to determine whether an asset can be included in an index. Criteria may include liquidity, market capitalization, regulatory status, or governance quality. (See Eligiblity Criteria)
Equity (Tech ETF) A tokenized representation of a traditional equity ETF (Exchange-Traded Fund), often focused on technology stocks. Can be integrated into tokenized RWA (Real-World Asset) or thematic indices.
ERC-20 (Ethereum Request for Comment 20) The most widely used technical standard for fungible tokens on Ethereum. Many assets on EVM (Ethereum Virtual Machine)-compatible chains follow ERC-20 or equivalent token standards.
ETF (Exchange-Traded Fund) A traditional investment product that tracks a basket of assets and trades on exchanges like a stock (a company share in traditional financial markets). Onchain structured index products mirror ETF logic while offering real-time transparency and automation.
Execution & Settlement The process of routing trades to exchanges and finalizing asset ownership. In decentralized finance, this is typically managed via smart contracts and blockchain consensus.
Expansion Campaigns Protocol-driven initiatives aimed at increasing user adoption, token exposure, or cross-chain integrations.
EVM (Ethereum Virtual Machine) The decentralized computation environment that executes smart contracts on Ethereum and compatible blockchains.
F
Factsheet A one-page summary document that presents the key information of an index fund: holdings, NAV (Net Asset Value), fees, performance, and methodology.
Fallback Mechanisms Predefined backup actions triggered in case of system failure or error (e.g., oracle malfunction, liquidity outage).
FATF (Financial Action Task Force) An intergovernmental body that sets global standards for AML (Anti-Money Laundering) and CTF (Counter-Terrorism Financing).
Fees Charges applied by a fund or protocol, which may include management fees, performance fees, or redemption fees. (See Fee & Revenue Model for details.)
Fixed Supply A token design where the maximum number of units is capped and cannot increase, often used to ensure scarcity.
Free Float Factor (FFF) The percentage of an asset’s supply that is freely tradable on the market, used to adjust market capitalization in index weighting.
Full-Dollar Peg Structure A mechanism designed to maintain a strict 1:1 valuation between an index unit and its base currency (e.g., USDC), using real-time NAV (Net Asset Value) pricing and redemption logic.
Future (Futures Contract) A standardized derivative contract that obligates the buyer to purchase, or the seller to deliver, an asset at a predetermined price on a specified future date.
In traditional finance, futures are widely used on commodities, currencies, and stock indices.
In crypto, futures allow leveraged exposure to digital assets without holding the underlying tokens. Unlike options (which give the right but not the obligation to buy or sell), futures impose an obligation on both counterparties at maturity.
G
Governance The decision-making system of a protocol or organization, typically involving token-holder voting or delegated authority.
Governance Quorum The minimum participation threshold required for a governance proposal to be valid, ensuring that decisions reflect sufficient community involvement.
Government Bonds (Govies) Debt securities issued by national governments to finance public spending.
In traditional finance, government bonds (e.g., U.S. Treasuries, German Bunds, French OATs "Obligations Assimilables du Trésor") are considered low-risk investments and form the basis for the “risk-free rate” used in financial models.
In digital finance, government bonds may be tokenized and integrated into RWA (Real-World Asset) indices.
H
Hedging A risk management strategy designed to reduce exposure to price fluctuations, often by using derivatives, delta-neutral positions, or offsetting assets. (See Option Module for details.)
Herfindahl-Hirschman Index (HHI) A concentration metric that measures how diversified a portfolio or index is. Higher values indicate higher concentration, while lower values reflect greater diversification. (See Analytics Calculation for the formula.)
Hybrid Custody A custody model that combines onchain smart contracts with institutional-grade offchain custodians, balancing transparency with compliance and security.
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