📚Glossary

This glossary explains the key terms used in Liquify to help you navigate the platform and understand its features.

Allocation

The total amount of tokens set aside for distribution to investors during a funding round or private sale.

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Cliff Period

A fixed period at the beginning of a vesting schedule during which no tokens are released. Tokens start vesting only after this period ends.

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DeFi (Decentralized Finance)

A financial ecosystem built on blockchain technology that operates without intermediaries, enabling peer-to-peer transactions and services.

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Initiator

A project creator or token allocation holder, such as KOLs, venture capitalists, community VCs, validators, or family offices, who uses Liquify to manage and distribute token allocations.

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Investor

An individual or entity that participates in token funding rounds on Liquify to gain exposure to early-stage projects.

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KYC (Know Your Customer)

A verification process where users provide identification to ensure compliance with regulatory requirements and prevent fraud.

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Liquid / Synthetic Tokens

ERC-20 tokens issued by Liquify that represent future vested tokens. They are tradeable immediately and provide liquidity even before the vesting period concludes.

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Liquid Vesting

A feature on Liquify that allows token holders to trade or utilize liquid tokens, which represent locked tokens, prior to the completion of the vesting schedule.

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Liquidity-Free VC

A future feature of Liquify allowing users to act as venture capitalists without needing upfront liquidity, leveraging the platform’s innovative mechanisms.

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OTC (Over-the-Counter)

A permissionless feature that allows users to create unique links to trade tokens directly without using traditional exchanges.

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P2P Order Book

A peer-to-peer marketplace on Liquify where users can trade liquid tokens using an order-book style interface.

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Protocol Fee

A percentage fee (e.g., 2.5%) collected by Liquify during investments, trades, and other transactions on the platform.

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Real Tokens

The actual tokens of a project that are distributed to investors based on the vesting schedule after the synthetic tokens have been issued.

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Referral Program

An incentive system where users earn rewards for bringing new investors or initiators to the platform.

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TGE (Token Generation Event)

The event when a project officially issues its tokens to investors, marking the start of token availability and vesting schedules.

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Vesting Schedule

A timeline that defines when and how tokens will be gradually unlocked and distributed to investors.