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description: List of Terminology used in this whitepaper
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# Glossary

**AI-Powered**\
Refers to the core methodology used by Mashida, where advanced Artificial Intelligence (AI) are utilized to analyze market data, automate investment strategies, and manage risk across the platform products.\
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**APY (Annual Percentage Yield)**\
Forecast annual rate of return on an investment, including the effect of compounding interest. Mashida uses this metric to show the potential returns from our LP Vaults\
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**Automated Vaults**\
A product offered by Mashida where users can deposit and lock digital assets. These vaults automatically deploy funds into Liquidity Provider (LP) pool positions and use AI-powered hedging strategies to generate competitive yields with minimum risk\
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**Decentralized Finance (DeFi)**\
A financial system built on blockchain technology that enables peer-to-peer transactions and financial services without rely on traditional finance institution like banks\
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**Hedging**\
An investment strategy used to reduce the risk of price movements in an asset. Mashida Automated Vaults use AI to perform hedging to protect user capital against market volatility.\
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**Impermanent Loss**\
A potential risk associated with providing liquidity to a pool. It is the decrease of assets  value in a pool compared if simply holding them in your wallet. \
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**Market Risk**\
The inherent risk that the value of your underlying digital assets (such as those in liquidity pool) due to market volatility or negative sentiment\
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**Liquidity Provider (LP)**\
An Individual or organization who provides and lock their digital assets to liquidity pool protocol to facilitate trading. In return, Liquidity Provider will earn share of protocol fees.\
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&#xNAN;**$MSHD Token**\
The native utility token of the MASHIDA ecosystem. $MSHD required to access the platform features and participate in our products.\
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**MasterP**\
Mashida integrated payment system product, designed to bridge the traditional finance with the on-chain economy by providing simple and secure cash-to-crypto (on-ramp) and crypto-to-cash (off-ramp) services.\
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**On-Ramp / Off-Ramp**\
The processes of converting fiat currency (like IDR /or USD) into cryptocurrency (on-ramp) and converting cryptocurrency back into fiat currency (off-ramp). \
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**Roadmap**\
A timeline of the future plans, milestones, and development phases of a project. Mashida roadmap details will cover our upcoming features and long-term vision.\
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**Smart Contract**\
A self-executing contract with the terms of the agreement directly written into lines of code. Mashida relies on audited smart contracts to automate all platform functions.\
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**Tokenomics**\
The economic and distribution model of $MSHD token, includes its total supply, allocation, distribution schedule, and the mechanisms that drive its utility and value within the Mashida ecosystem.&#x20;
