Glossary
All key terms used in Fractit documentation.
AMM
Automated Market Maker — prices assets algorithmically using a constant product formula. No order book required.
Canton Coin (CC)
Canton Network's native digital asset. One of Fractit's two settlement currencies.
Canton Network
The privacy-preserving, enterprise-grade distributed ledger on which Fractit is built.
Constant Product
The AMM pricing invariant: x · y = k. Maintained across every trade.
Custody Value
The marked-to-market value of all constituent shares held by the SPV, used in NAV calculation.
DAML
The smart contract language used on Canton Network. Purpose-built for financial agreements.
DFMREI
DFM Real Estate Sector Index — the reference index tracked by DFMREIT. Calculated by S&P DJI on behalf of the Dubai Financial Market.
DFMREIT
Fractit's first live index token — providing 1:1 on-chain exposure to the DFMREI.
Discount
When the AMM market price of an index token is below its indicative NAV.
Free Float Factor (FFF)
The multiplier applied to a company's market capitalisation to reflect only freely tradeable shares in index weight calculations.
Full Replication
The method of backing an index token by purchasing all actual constituent shares in their target index weights.
GICS
Global Industry Classification Standard — the sector classification framework used by the DFM to categorise listed companies.
Impermanent Loss
The difference in value between holding LP tokens versus holding the underlying assets separately, caused by price ratio changes in the AMM pool.
Index Token
A Canton-native token representing 1:1 economic exposure to a basket of exchange-listed shares.
Indicative NAV
Real-time estimated NAV per token, calculated using live market prices during trading hours.
KYC
Know Your Customer — identity verification and AML screening required before any activity on Fractit.
LP Token
A token issued to Liquidity Providers representing their proportional share of an AMM pool.
Liquidity Provider (LP)
A participant who deposits assets into the AMM pool to earn trading fees.
Management Fee
0.25% per annum, accrued daily and reflected in the NAV.
NAV
Net Asset Value — the per-token value of DFMREIT, calculated from SPV holdings.
Official NAV
The NAV calculated daily after DFM market close using official closing prices.
Premium
When the AMM market price of an index token is above its indicative NAV.
Price Impact
The effect of a trade on the AMM pool price, proportional to trade size relative to pool size.
Redemption Fee
0.50% deducted from the payout at the time of token redemption.
Redemption Window
A pre-announced period during which token holders can burn DFMREIT for CC or USDC at NAV-based pricing.
Rebalancing
The quarterly process by which index constituent weights are reset and SPV holdings are adjusted to match.
S&P DJI
S&P Dow Jones Indices — the independent calculation agent for DFM Indices.
SPV
Special Purpose Vehicle — the legal entity that holds constituent shares in custody on behalf of token holders.
Subscription
The primary market process of acquiring index tokens by depositing CC or USDC.
Subscription Fee
0.50% applied at the time of primary market token issuance.
USDC
USD-pegged stablecoin accepted by Fractit for subscriptions, trades, and redemptions.
VARA
Virtual Asset Regulatory Authority — Dubai's regulator for virtual assets. Fractit is designed to operate within VARA's framework.
Whitelist
The on-chain list of KYC-verified wallets eligible to hold, transfer, and trade index tokens.
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