| Term | Definition |
|---|---|
| Adjusted MID | Oracle mid-rate after inventory adjustment is applied. Used as the anchor for bid/ask quote construction. |
| AML/CFT | Anti-Money Laundering / Counter-Financing of Terrorism. Regulatory requirements that all Ratio partners must comply with. |
| Atomic settlement | A transaction model where both sides of a swap execute in a single on-chain transaction. Either both complete or neither does — there is no partial settlement. |
| Base spread | The minimum spread floor, covering operating costs. Set per currency pair. |
| BFT | Byzantine Fault Tolerant. The consensus mechanism used by the Kaia blockchain, providing deterministic, immediate finality. |
| Circuit breaker | An automated safety mechanism that adjusts or restricts trading when market conditions deteriorate. Protects LP capital and partner execution quality. |
| Corridor | A supported currency pair for FX conversion. Each corridor (e.g., USDT-IDRX) connects two stablecoins and has its own oracle feeds, fee schedule, and liquidity pools. |
| Fee breakdown | The detailed fee object returned in every quote response, showing fixed fees, variable fees, spread components, and the all-in cost. |
| Firm quote | A binding, executable price signed by Ratio with a hard expiry timestamp. Submitting it on-chain (commitFirmQuote) performs the atomic swap. |
| FX Engine | Ratio’s core execution component. Constructs quotes using oracle-based pricing and executes atomic swaps on-chain. |
| Herstatt risk | The risk in traditional FX that one counterparty delivers their currency but the other fails to deliver. Eliminated by Ratio’s atomic settlement. |
| IDRP | Indonesian Rupiah stablecoin (Rupiah Token). Serves the USDT-IDRP and IDRP-JPYC corridors. |
| IDRX | Indonesian Rupiah stablecoin. The regulated IDR corridor anchor on the Kaia blockchain. |
| Indicative quote | A reference price for display or planning purposes. It is not signed or persisted and cannot be executed. |
| Inventory skew | A spread component (which can be negative) that makes the beneficial trade direction cheaper and the harmful direction more expensive, attracting flow that reduces pool imbalance. |
| JPYC | Japanese Yen stablecoin. Serves the USDT-JPYC, IDRX-JPYC, and IDRP-JPYC corridors. |
| Kaia | The Layer 1 blockchain on which Ratio is built. Provides sub-second BFT finality and full EVM compatibility. |
| kToken | A share token issued to LPs, one per asset and LP class (e.g., kIDRX-fx, kIDRX-full). Represents the LP’s pool share; swap fees accrue separately and are claimed in USDT. |
| KYB | Know Your Business. The due diligence process applied to all partners during onboarding. |
| Liquidity Hub | The SOL component that manages stablecoin pools, coordinates rebalancing, and ensures swap availability. |
| Liquidity pool | A single-sided, per-currency pool of stablecoins that provides depth for FX execution. Each supported stablecoin has its own dedicated pool. |
| Liquidity Provider (LP) | An entity that deposits stablecoins into Ratio’s pools and earns a share of swap fees proportional to their deposit. |
| Off-Ramp | The SOL component that converts stablecoins to local fiat via domestic payment rails. |
| On-Ramp | The SOL component that converts fiat to stablecoins for entry into the SOL. |
| Oracle | An external price feed that provides real-time FX rates. Ratio uses Pyth Network as its primary source, RedStone as a fallback and OANDA as a cross-check, and verifies quoted prices on-chain against Orakl Network. |
| Partner | A business entity integrated with Ratio’s API — PSP, bank, stablecoin issuer, exchange, LP, or similar. |
| Pyth Network | Ratio’s primary oracle source, providing institutional-grade FX data. |
| Rebalancing | The process of restoring pool health when FX flows create inventory imbalances. Coordinated automatically via external market makers. |
| SOL | Stablecoin Orchestration Layer. Ratio’s complete middleware stack: On-Ramp, FX Engine, Liquidity Hub, Yield Engine, Off-Ramp, and Communication Layer. |
| Spread | The difference between the oracle mid-rate and the rate you receive. Constructed dynamically from base, volatility, liquidity, off-market hours, risk state and inventory skew components. |
| USDT | Tether’s US Dollar stablecoin. The global reference stablecoin and the USD-side anchor for Ratio’s corridors. |
| Yield Engine | The SOL component that deploys idle stablecoin balances into yield strategies, maximising LP returns on surplus liquidity. |
Resources
Glossary
Key terms and definitions used across Ratio documentation