# Glossary Section

<table><thead><tr><th width="162.33331298828125">Term</th><th>Definition</th></tr></thead><tbody><tr><td>Vault</td><td>A secure, on-chain smart contract where users lock supported
 collateral (e.g., ETH, staked tokens, tokenized gold) to borrow
 blue-chip assets.</td></tr><tr><td>PDP</td><td>Paydax's native utility token that provides governance rights,
 staking rewards, and ecosystem benefits.</td></tr><tr><td>Debt</td><td>The amount of borrowed assets a user has taken from their Vault.
 Must be repaid to unlock the collateral.</td></tr><tr><td>Collateral Safety
<br>Score (CSS)</td><td>A ratio representing the health of a vault. If CSS drops below
 100.5%, partial or full liquidation may occur.</td></tr><tr><td>Stability Pool</td><td>A PDP-funded pool that helps manage undercollateralized
 vaults. Participants earn a portion of the liquidated collateral as
<br>rewards.</td></tr><tr><td>Loan-to-Value (LTV)</td><td>The ratio of borrowed assets against collateral value. Influenced
 by user tier and asset risk.</td></tr><tr><td>Over-Collateralizatio
n</td><td>The requirement to deposit more collateral than the value of
 borrowed assets. Ensures system solvency and stability.</td></tr></tbody></table>