> For the complete documentation index, see [llms.txt](https://limitless.gitbook.io/ramm/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://limitless.gitbook.io/ramm/introduction/key-terms.md).

# 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*](/ramm/instrument-examples-and-usage/overview.md) 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](/ramm/introduction/high-level-description.md). 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.