Glossary

• AI Infrastructure: the physical assets AI runs on: connectivity (wireless access equipment, backhaul, ISP networks), CDN and compute (servers, edge processing, hosting capacity). Connectivity is what the Vault finances today; CDN and compute are expansion areas. The asset classes the USD.infra Vault finances and brings on-chain.

• USD.infra Vault: infrastructure finance conducted on-chain. The USD.infra Vault is the project-finance layer that routes stablecoin capital into AI infrastructure projects through a vault and bankruptcy-remote SPVs, then returns contracted cashflows to participants.

• Compute: the deal-type category covering processing and storage infrastructure like edge compute and hosting/processing capacity monetized through contracted arrangements.

• Connectivity: the deal-type category covering internet delivery infrastructure like apartment building agreements, ISP acquisitions, and carrier offload arrangements.

• USD.infra: non-yield-bearing settlement stablecoin used as the settlement and accounting unit in the USD.infra Vault.

• sUSD.infra: vault participation token; composable across supported DeFi venues; represents a participation claim on vault performance, subject to eligibility and transfer restrictions.

• SPV (Special Purpose Vehicle): bankruptcy-remote project entity that owns/finances projects.

• DSCR (Debt Service Coverage Ratio): the ratio of a project's cash flow available for debt service to its debt service obligation. Used as an eligibility criterion in the Allocation Rule.

• Exchange Rate: The published per-token value of sUSD.infra, calculated as total Vault value (assets + revenue − losses) divided by sUSD.infra supply. The exchange rate is the reference value for protocol redemptions in both immediate and queued settlement.

• Proof of Reserves: A transparency mechanism proving the assets backing a token or portfolio.

• Attestation Provider: Independent validator of off-chain portfolio inputs.

• Oracle: On-chain data publishing mechanism used by smart contracts.

• Impairment: Loss or write-down applied to portfolio value.

• M0: the stablecoin infrastructure protocol underlying USD.infra and sUSD.infra. M0 provides minting, redemption, with backing that includes short-duration U.S. Treasuries.

• Bytes: DAWN's non-transferable points system, used to recognize participation in the USD.infra Vault ecosystem during a defined season. Bytes have no monetary value and are not redeemable, tradable, or transferable.

• TVL (Total Value Locked): the total value of assets held in the vault, used as the denominator for the undeployed liquidity sleeve target.

• Liquidity Sleeve: the portion of Vault capital held in undeployed liquid assets to support protocol redemptions and other liquidity-management functions. Current guidance targets approximately 40 to 50% of TVL, subject to a minimum floor of 10%.

• Liquidity Floor: the minimum level the Vault maintains in its liquidity sleeve. When the floor is reached, new protocol redemption requests enter a queue rather than settling immediately.

• Exit Fee: a dynamic fee applied to protocol redemptions that starts at zero and increases as the liquidity sleeve is depleted. Exit fees are paid into the Vault and accrue to exchange rate rather than being retained by DAWN.

• Circuit Breaker: a mechanism that limits aggregate redemption volume across all participants over a 24-hour period when redemption demand becomes unusually high.

• Redemption Queue: the ordered list of pending redemption requests that forms when the liquidity sleeve is at or below its floor. Queued positions continue accruing Vault performance and fill at the exchange rate in effect when they execute.

• Verification: the participant identity check (KYC) required to redeem through the protocol.