Glossary
The words used across DFM.
Terms#
| Term | Meaning |
|---|---|
| Fund | A basket of tokens with target weights, held by a vault, with its own share token. |
| Basket | The assets of a fund and their target weights. |
| Basis point (bp) | 0.01%. Weights add up to 10,000 bps. |
| Share | The fund’s token. Each share is an equal claim on everything the vault holds. |
| Basket supply | Shares in circulation, excluding the locked seed share. |
| Seed | The amount paid at launch that mints a locked share, so the first depositor cannot move the price. |
| In kind | Paid in the tokens themselves rather than in USDC. |
| Escrow | The temporary program account a deposit or redemption runs through. |
| Leg | One token’s purchase or sale inside a deposit or redemption. |
| Keeper | The service that runs the legs. It cannot change what you signed. |
| Drift | How far a fund’s holdings have moved from its target weights. |
| Rebalance | Swapping between a fund’s own assets to bring holdings back to target. |
| Cash sleeve | USDC declared in the basket, usually at 0%, used to settle redemptions. |
| Policy | Limits a creator writes into the fund, checked by the contracts. |
| Creator / admin | The wallet that launched a fund and manages it. |
| App wallet | The wallet DFM creates for you and signs with on your behalf. |
| Session key | A key limited to rebalancing one fund, used by automation. |
| TVL | Total value locked: the dollar value of everything a fund holds. |
| GAV | Gross asset value: the same, used in the share price formula. |
| MCP | Model Context Protocol: the standard AI agents use to call DFM’s tools. |