Glossary of Terms

• Smart Contract - a program that runs on Ethereum based virtual machines, and implements a certain intended logic.

• Lending Pool - a smart contract that facilitates lending and borrowing. A Lending Pool has a First Loss Capital Provider and issues tokens that represent the Lender’s share of the pool capital.

• Sapling Pool - a Lending Pool that lends to Community Banks.

• Loan Desk - a smart contract that facilitates the loan application process.

• Lender - a user, an Ethereum address, who provides capital into any Lending Pool or the Sapling Pool and votes on new Loan applications with the intention of earning interest on the funds provided.

• Borrower - a user, an Ethereum address, who borrows funds from a Lending Pool under agreed conditions with the intention of paying back the borrowed funds with interest.

• First Loss Capital Provider - a user, an Ethereum address, that provides first loss capital, checks initial loan applications and manages a certain Lending Pool parameters.

• Protocol Governance - a decentralised entity that can take governing actions and controls a set of parameters across the protocol components.

• Capital Token - ERC20 token (USDC) representing the capital provided to Lending Pools by the Lenders and First Loss Capital Providers.

• Pool Token - ERC20 tokens that represent Lender positions, and are issued and controlled by the Lending Pools.