# Glossary *** | Term | Definition | | --------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | | **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. | --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.fractit.com/resources/glossary.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.