> ## Documentation Index > Fetch the complete documentation index at: https://docs.cargotrading.xyz/llms.txt > Use this file to discover all available pages before exploring further. # Glossary > Plain definitions of the commodity, legal and on-chain terms used across the Cargo Finance docs, for DeFi readers and commodity desks alike, plus the terms specific to the Genesis Vault. Cargo Finance sits between the physical trade in real-world assets and DeFi. Each side has its own vocabulary. This page defines both, then the terms specific to the Genesis Vault. ## Commodity and Trade Terms | Term | Meaning | | :- | :- | | **Collateral manager** | An independent firm that controls the warehouse or vault, weighs, grades and signs for goods, and releases them only against payment | | **Delivery costs** | The fixed costs of moving goods from storage to the point where the reference price applies (for example port, handling and insurance). They are deducted in NAV | | **EUDR** | The EU Deforestation Regulation; it requires plot-level origin data for commodities such as cocoa, coffee and cattle products sold into the EU | | **Farmgate price** | The price paid to farmers or cooperatives at origin | | **FOB (free on board)** | A price for goods loaded on the vessel at the port of export, with the buyer paying freight from there | | **Hedge market** | The liquid futures or benchmark market a vault's asset is checked and hedged against (for example ICE for softs, LME for base metals, LBMA for gold) | | **Lot** | A batch of goods received into custody, with its own lot ID, weight, grade and receipt | | **Offtaker** | A buyer (exporter, processor, refiner or trader) that buys the goods for export or processing | | **Receipt** | The collateral manager's signed record that a lot is in custody, with its weight and grade. No receipt, no mint | | **Reference price** | The published price a vault's NAV starts from: an exchange settlement price or a benchmark | ## Legal and Regulatory Terms | Term | Meaning | | :- | :- | | **Limited recourse, non-petition** | Contract terms that stop creditors from claiming beyond the SPV's assets or forcing it into insolvency | | **Pledge with dispossession** | A pledge where the goods are handed to a third party (here, the collateral manager) rather than staying with the owner | | **Regulation S** | The US rule for offers made outside the United States. Cargo vaults are offered only to non-US persons | | **SPV** | Special purpose vehicle. The bankruptcy-remote company that owns every receipted lot in a vault | ## Vault and Market Terms | Term | Meaning | | :- | :- | | **Authorised participant (AP)** | A panel firm that can create shares at NAV + 0.10% and redeem at NAV − 0.10%, keeping the market price close to NAV | | **Batch auction** | A sealed, uniform-price auction at a fixed interval in which the Vault SPV sells new shares (every 12 days in the Genesis Vault) | | **Bonding curve** | A price that rises with the amount raised. Each Genesis Auction uses a linear curve that stops below NAV | | **cv share** | A Cargo vault share: "cv" plus the asset, for example cvCOCOA. One share is one unit of the receipted asset | | **Discount to NAV** | How far below NAV new shares sell. It is the main source of return for holders | | **First loss (subordination)** | The 10% of each lot that originators keep as subordinated shares; it absorbs shortfalls before senior holders | | **Genesis Auction** | The first sale of a vault's shares, on a bonding curve, with a minimum and a cap | | **Genesis Vault** | The first Cargo vault: West African Grade 1 cocoa priced off ICE London Cocoa, issued as cvCOCOA | | **Hold / Rotate** | Hold: keep shares bought below NAV. Rotate: buy in each batch, pre-sell the units, redeem and bid again | | **iNAV** | Indicative NAV between daily fixes, moved with the asset's hedge market | | **Liquidity Bridge** | A pool of LP capital that buys shares instantly from holders at NAV − 1.0% | | **NAV** | Net asset value per share: the asset's reference price, less levies and delivery costs, converted to USD | | **Reserve price** | The lowest price an originator will accept for a lot in a batch, published before the window opens | | **RFQ** | Request for quote: a holder asks panel market makers for firm prices on a block | | **Tape** | The public record of each batch: clearing price, discount to NAV, volume, bid-to-cover and lot IDs | | **Vault** | One asset, held as receipted, pledged inventory by a Vault SPV, with its own lots, NAV and vault shares | ## On-Chain Terms | Term | Meaning | | :- | :- | | **Arc** | Circle's USDC-native layer-1 chain and the target home for Cargo vault shares. Base is the fallback | | **Atomic settlement** | Shares and USDC swap in a single transaction, so neither side can fail to deliver | | **ERC-3643** | A permissioned token standard: every transfer is checked against an on-chain identity registry | | **Identity registry** | The on-chain whitelist of verified wallets. Only a participant ID and wallet status are stored, never personal data | | **Pause guardian** | A role that can suspend minting, batches, creations or redemptions on a safety trigger | | **Safe** | A multisignature wallet used to administer the contracts, behind a timelock | | **Timelock** | A delay between approving an administrative change and executing it, so changes are visible first | | **USDC** | Circle's US dollar stablecoin, the settlement asset for every trade | ## Genesis Vault Terms | Term | Meaning | | :- | :- | | **CEMAC** | The Central African Economic and Monetary Community. Its residents are excluded from the Genesis Vault offer | | **Cut test, bean count, moisture** | Standard cocoa quality checks recorded on every Genesis Vault receipt | | **cvCOCOA** | Cargo Vault Cocoa, the Genesis Vault share. One share is one kilogram of receipted cocoa | | **ICE London Cocoa** | The cocoa futures contract on ICE Futures Europe, quoted in GBP per tonne. One lot is 10 tonnes. It is the price reference and hedge for cvCOCOA | | **West African Grade 1** | The top export grade for West African cocoa beans: well fermented and dried, with the tightest limits on moisture, mould, slate and defective beans. The Genesis Vault holds only this grade | This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.