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Terms

Bridges

Protocols that facilitate asset and data transfer between different blockchain networks. Bridges can be trust-minimized (e.g., ZK-proofs, MPC) or centralized.

Collateral

Assets deposited by a user to secure a credit line. Sprinter Credit values collateral across all supported chains as a single unified portfolio.

Credit Account

A guardrailed smart contract that holds issued credit funds and enforces usage constraints defined by the credit policy.

Credit Configuration

The financial terms governing a credit line: supported collateral assets, LTV ratios, credit asset, interest rate, term length, and fees. A tighter credit policy can unlock a more favourable configuration.

Credit Hub

The core component of Sprinter Credit. Handles credit line creation, drawdowns, repayments, and liquidations across supported networks.

Credit Line

A pre-approved borrowing facility issued by Sprinter Credit, allowing users or agents to draw funds up to a defined limit based on their collateral and credit configuration.

Credit Operator

An entity (user, app, or agent) granted access to a Sprinter Credit line on behalf of its owner, subject to fine-grained policy constraints such as allowed actions, amount caps, and co-sign requirements.

Drawdown

The act of drawing funds from an open credit line up to the available credit limit.

Fill

A fill represents the full lifecycle: detecting a user intent, borrowing liquidity, executing the transaction, repaying liquidity, and realizing solver and protocol profits.

Health Factor

A single number indicating how close a position is to liquidation, calculated as (Collateral Value x Maintenance LTV) / Outstanding Debt. A Health Factor above 1.0 is safe; below 1.0 the position is eligible for liquidation.

Intent Systems

A model where users specify desired outcomes, and solvers or order flow networks execute transactions accordingly.

Interop

The ability of multiple blockchain networks to communicate and share information in a seamless, trust-minimized, and permissionless way. This enables assets, smart contracts, and transactions to interact across chains without requiring users to manage complex bridging processes.

Liquidation

When a position’s Health Factor drops below 1.0, Sprinter Credit liquidates as much collateral as needed to restore a healthy position. Partial liquidations are preferred. Liquidators receive a 5% bonus on the collateral they claim.

Liquidity Layer

The component that sources and manages the capital required for credit issuance. Liquidity Providers deposit into the Liquidity Hub to earn yield.

Liquidity Provider

A participant who supplies capital to the Sprinter Liquidity Hub in exchange for yield.

Loan-to-Value (LTV)

The ratio of a user’s credit limit to the value of their collateral. Each supported collateral asset has its own LTV ratio reflecting its risk profile. Max Credit = Collateral Value x LTV

Maintenance LTV

The maximum LTV a position may reach before becoming eligible for liquidation. Set above the initial LTV to provide a safety buffer. Current LTV = Outstanding Debt / Collateral Value

MEV (Maximal Extractable Value)

The value miners, validators, or solvers can extract by reordering transactions, with growing importance in MEV-resistant routing across chains.

Overcollateralized Credit

A credit line where the value of deposited collateral exceeds the credit issued, reducing lender risk.

Policy Engine

The Sprinter Credit component that makes credit configurable. Every credit line is governed by a policy defining who can use it, what they can do with it, and under what conditions. Tighter constraints enable more favourable credit terms.

Productive Collateral

Collateral assets that continue to generate yield while locked in Sprinter Credit, making credit cheaper by design. Sprinter Credit integrates with DeFi strategies from Gauntlet and YO for this purpose.

Solvers

Automated agents that find and execute the most efficient way to fulfill a user’s intent, optimizing for cost, speed, and security.

Borrow Quote

A borrow quote is the preliminary estimated fee a solver would incur to borrow credit from Sprinter Liquidity. It is returned off-chain via the Sprinter Liquidity API and helps solvers determine if pursuing a fill is profitable. A borrow quote includes expected gas, risk premiums, protocol fees, and capital access costs — but it is not a binding or reserved price.

Borrow Cost

A borrow cost is the final, authorized borrowing offer issued by Sprinter Liquidity when a solver decides to proceed with a fill. It reserves credit under specific conditions, allowing solvers to confidently execute the crosschain transaction.

Swaps

Asset exchanges that can occur within a single chain or across multiple chains using interoperability protocols.

Undercollateralized Credit

A credit line where the issued credit exceeds the value of deposited collateral (or requires no collateral at all). Enabled by tight usage constraints via the Policy Engine.