> For the complete documentation index, see [llms.txt](https://docs.mezz.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.mezz.finance/resources/glossary.md).

# Glossary

**Assets & Standards**

<table><thead><tr><th width="269.71875">Term</th><th>Description</th></tr></thead><tbody><tr><td><strong>mzUSD</strong></td><td>Base accounting token. Entry point to the protocol.</td></tr><tr><td><strong>smzUSD</strong></td><td>Senior Tranche receipt token.</td></tr><tr><td><strong>MLT</strong></td><td>Mezzanine Tranche receipt token.</td></tr><tr><td><strong>JLT</strong></td><td>Junior Tranche receipt token.</td></tr><tr><td><strong>ERC-4626</strong></td><td>Tokenized vault standard. Implemented by all three Mezzanine tranche vaults.</td></tr></tbody></table>

#### Financial Metrics

<table><thead><tr><th width="269.51171875">Term</th><th>Description</th></tr></thead><tbody><tr><td><strong>NAV (Net Asset Value)</strong></td><td>Ratio of protocol assets to mzUSD claims outstanding. A NAV drop indicates a loss event.</td></tr><tr><td><strong>PPS (Price Per Share)</strong></td><td>How a tranche vault expresses gains and losses over time.</td></tr><tr><td><strong>Epoch</strong></td><td>A 7-day accounting period used for yield distribution and unstaking. Epochs run on a fixed weekly cycle. Unlock periods are measured in full epochs.</td></tr><tr><td><strong>Conversion Rate</strong></td><td>The amount of mzUSD received per receipt token on withdrawal. Based on the tranche's current PPS at the time of finalization.</td></tr></tbody></table>

#### Protocol Mechanics

<table><thead><tr><th width="269.7109375">Term</th><th>Description</th></tr></thead><tbody><tr><td><strong>Loss Waterfall</strong></td><td>Fixed loss application order: JLT → MLT → smzUSD.</td></tr><tr><td><strong>Base Reward</strong></td><td>Yield shared pro-rata across all staked tranches each epoch.</td></tr><tr><td><strong>Risk Premium</strong></td><td>Additional yield allocated exclusively to MLT or JLT each epoch.</td></tr><tr><td><strong>Protocol Fee</strong></td><td>Fee deducted from gross strategy yield before distribution.</td></tr><tr><td><strong>Unstaking</strong></td><td>Exiting a tranche position. smzUSD is instant. MLT and JLT require an epoch-based waiting period.</td></tr><tr><td><strong>Redeem</strong></td><td>Burning mzUSD to receive USDC, subject to available liquidity. Distinct from unstaking.</td></tr></tbody></table>

#### Infrastructure & Roles

<table><thead><tr><th width="269.90625">Term</th><th>Description</th></tr></thead><tbody><tr><td><strong>Issuance Vault</strong></td><td>The settlement layer for all mzUSD mints and redemptions. Maintains a liquid buffer for instant redemptions.</td></tr><tr><td><strong>Reservoir</strong></td><td>On-chain liquid reserve. Target ~1-5% of total liquidity. Refills the Issuance Vault and supports short-duration strategies.</td></tr><tr><td><strong>Master Vault</strong></td><td>The protocol's primary capital pool. Target ~95-99% of total liquidity. Deployed into whitelisted strategies for yield generation.</td></tr><tr><td><strong>NAV Oracle</strong></td><td>Reports Net Asset Value from strategy data to the protocol. Used to trigger yield distribution and detect loss events.</td></tr><tr><td><strong>Curator</strong></td><td>Operator responsible for deploying and managing capital within the Master Vault under predefined risk parameters.</td></tr><tr><td><strong>POL (Protocol-Owned Liquidity)</strong></td><td>Protocol capital held in tranches.</td></tr><tr><td><strong>Reserve</strong></td><td>Protocol capital outside the user tranche system. May absorb losses before the user waterfall applies.</td></tr><tr><td><strong>PendingWithdrawal</strong></td><td>Contract managing mzUSD claims during the tranche unstaking period.</td></tr></tbody></table>


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