# Key Terms ### Key Terms **`VT/Vault`** Vault token attached and exposed to multiple instruments. **`Instruments`** We characterize **`Instruments`** as any ground for a specific kind of financial transaction between two parties; those who *demand(utilize)* liquidity and those who *supply(invest)* liquidity. Demanders require capital and put it to work and thereby pay the suppliers with returns(in the form of yield). {% hint style="info" %} Some examples: a) In the case of a loan, the borrower *demands* liquidity by being willing to pay the price of capital to lenders(suppliers). b) In the case of insurance, the insurance seller *supplies* capital to insurance buyers(demanders), who pay the sellers the price of capital. c) In the case of market making, an efficient market *demands* liquidity to be almost always available to takers, and by doing so rewards the market makers(suppliers) a certain amount of spread and fees. {% endhint %} An Instrument could take the form of, but is not limited to, cash flow generating assets such as unsecured/collateralized loans and volatility selling positions or a contract that simply buys and hold financial assets. For example, an **`Instrument`** could be a **`creditline`** contract. The principal would be supplied from **`VT`**, and borrowers would interact with this contract to borrow and repay the principal. After the loan matures, repaid capital and interest would be directed back to **`VT`**. More examples can be found in the [*Instrument Examples*](https://limitless.gitbook.io/ramm/instrument-examples-and-usage) section. An **`Instrument`** contract could be arbitrarily complex. All the system requires is it to inherit from the protocol's base implementation. **`longZCB`** Token that accrues junior tranche returns of the underlying **`Instrument`**.These are concentrated and levered bets on a single **`Instrument`**, while **`VT`** is a passive and senior investment in a pool of instruments. See diagram [here](https://limitless.gitbook.io/ramm/introduction/high-level-description). They are programmed such that the purchaser’s collateral would be used as first loss capital. Given a counterparty(**`shortZCB`** buyers), its open interest can scale arbitrarily(total amount of minted **`longZCB`**). **`shortZCB`** a tokenized borrow+sell position of **`longZCB`**. Pays off positively when the instrument fails to be profitable. **`Reputation`** A proxy of a manager’s risk assessment capability. Updated at the completion of each instrument’s cycle. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://limitless.gitbook.io/ramm/introduction/key-terms.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.