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Terminology

A short glossary of the terms used across these docs.

Tranched MetaVault: The product itself: a vault that wraps a single yield vault and splits the returns between a senior and a junior side. Each metavault is one address, one underlying vault, and issues two share tokens (lcSEN and lcJUN).
Senior tranche: The protected side. Depositors earn the underlying vault's APY minus a continuous premium and exit through a 5-day withdrawal notice. Senior is shielded from drawdowns up to the depth of junior.
Junior tranche: The first-loss side. Depositors earn the underlying vault's APY plus a premium boost from senior. Exits go through a 10-day notice and are gated by the leverage cap at execution time.
Tranche shares: The two share tokens issued by the metavault: lcSEN for senior and lcJUN for junior. Both are standard fungible tokens: transferable, composable, and priced by the value held by their tranche.
Senior NAV / Junior NAV: The asset value held by the senior side and the junior side, respectively. Each tranche's share price is its NAV divided by the share supply.
Share price: The per-share value of lcSEN or lcJUN at any point in time. Gains, losses, and premium all flow through the share price rather than being attributed per-position.
Loss waterfall: The order in which underlying losses are absorbed. Junior takes the first hit, capped at the depth of junior; any residual is then absorbed by senior.
Protection premium: The continuous fee senior pays junior for first-loss protection. Quoted as an annualised rate; transferred between the two tranches every block. Paused while either tranche is empty.
Senior protection target: The 20% depth of cover senior holders are protected for at full leverage. Enforced as a deposit-side leverage cap rather than a hard ceiling on payout. Drawdowns past what junior can absorb pass through to senior.
Senior withdrawal notice: The 5-day notice senior holders must file before redeeming. Filing transfers the noticed shares into the metavault so they can't be transferred while pending. Cancellable any time; refiling stacks the noticed amount and resets the timer.
Junior withdrawal notice: The 10-day notice junior holders must file before redeeming. Same lock and cancel semantics as senior. Execution is also gated by the leverage cap: a junior exit that would push senior past 4× junior is blocked until the ratio recovers.
Leverage cap: The largest senior position supported by current junior depth, expressed as a ratio. With 20% protection, senior can be at most 4× junior. Enforced both on senior deposits (rejected if they would breach) and on junior exits (rejected if they would breach).
Performance fee: An optional fee taken on positive value moves and paid out as freshly-minted junior shares to a fee recipient. Capped at 20% (MAX_PERFORMANCE_FEE_BPS) and never charged on losses. Set via the owner-only setPerformanceFeeRate; mainnet deployments route the owner through an external TimelockController so changes are queued on-chain before activation.