Glossary

Term	Definition
CDP	Collateralized Debt Position — a vault where users lock assets to mint VUSD.
VUSD	Virtue’s native over-collateralized stablecoin.
ICR	Individual Collateral Ratio — the collateral-to-debt ratio of a single CDP.
TCR	Total Collateral Ratio — the aggregated ratio of a specific collateral type in the system.
MCR	Minimum Collateral Ratio — the minimum required ratio to avoid liquidation.
RMT	Recovery Mode Threshold — the TCR level below which Recovery Mode is activated for a specific collateral type.
Stability Pool	A shared pool of VUSD used to repay debt from liquidated positions, in exchange for discounted collateral.
Flash Mint	A mechanism that allows users to mint VUSD without collateral within a single transaction, typically for liquidation or arbitrage.
Recovery Mode	A protective state triggered when a collateral type’s TCR falls below RMT, activating stricter liquidation rules.
Virtue SDK	A developer toolkit for interacting with Virtue Protocol (e.g. CDP, Stability Pool, Flash Mint).