# Glossary

This page provides a list of common terms and definitions used throughout this documentation to explain key concepts.

<table><thead><tr><th width="203.32421875">Defined Term</th><th>Definition</th></tr></thead><tbody><tr><td><strong>Allocator role</strong></td><td>A protocol-level role (Morpho, Euler) authorised to move funds between enabled markets. KPK does not use the public Allocator role on either protocol; allocation is scoped through KPK's <strong>Permissions Layer</strong> and the protocol's own role system to reduce the attack surface.</td></tr><tr><td><strong>Change Log</strong></td><td>A record of all major changes implemented in KPK-curated products. Each protocol section in this handbook has a dedicated Change Log for full transparency.</td></tr><tr><td><strong>Collateral</strong></td><td>Assets accepted within curated products to back borrowing or leveraged positions. Collateral parameters (e.g. liquidation thresholds, quotas, oracles) are typically set and/or monitored by KPK.</td></tr><tr><td><strong>Credit Account</strong></td><td>A Gearbox primitive: a per-borrower smart account that holds collateral and borrowed liquidity from a KPK Earn Pool and executes leveraged strategies under whitelisted adapters and parameters.</td></tr><tr><td><strong>Curator Safe</strong></td><td>The KPK multisig (typically 2/4) that holds Curator and Allocator roles on a vault. Day-to-day operations are scoped through KPK's Permissions Layer for agents; sensitive changes execute via the Safe under timelock.</td></tr><tr><td><strong>Earn Pools</strong></td><td>KPK-curated passive pools on <a href="/pages/2080768ddc9124676fded84e10c67e852237bfbe">Gearbox Permissionless (v3.1)</a>.</td></tr><tr><td><strong>Emergency Admin</strong></td><td>A predefined role with the ability to take immediate protective actions (e.g. pausing markets) in response to critical alerts, bypassing timelocks.</td></tr><tr><td><strong>EVC (Ethereum Vault Connector)</strong></td><td>The Euler component that coordinates collateral, liability and liquidation flows across EVK vaults, allowing a single account to hold positions in multiple Euler vaults.</td></tr><tr><td><strong>EVK (Euler Vault Kit)</strong></td><td>The Euler primitive used to instantiate ERC-4626 credit vaults with borrowing functionality. Each EVK vault has its own caps, oracle routing and risk parameters.</td></tr><tr><td><strong>Fact Sheet</strong></td><td>The one-pager summary of each KPK-curated product, provided on the relevant product page in this handbook, as well as the KPK website.</td></tr><tr><td><strong><code>forceDeallocate</code></strong></td><td>A permissionless function on Morpho v2 vaults that pulls liquidity from a specific underlying market back to the vault's idle balance. Each call burns a small per-adapter penalty from the caller's vault shares to discourage misuse. KPK keeps the penalty above zero to preserve allocation policy.</td></tr><tr><td><strong>KPK</strong></td><td>For the purpose of all KPK-curated products, KPK Digital Assets Inc.</td></tr><tr><td><strong>KPK-curated Products</strong></td><td>Pools and vaults hosted by leading DeFi protocols that bring together a diverse range of yield sources and risk profiles, where KPK manages the selection of the underlying assets (collateral) and allocation of funds to “curate” the product.</td></tr><tr><td><strong>Liquidation Threshold or LT</strong></td><td>The collateral ratio below which a position becomes liquidatable (e.g. on Gearbox). LT is set per collateral asset and determines borrowing capacity and liquidation risk.</td></tr><tr><td><strong>Liquidity adapter</strong></td><td>A per-vault setting on Morpho v2 vaults designating a single underlying market as the default withdrawal source. Withdrawals beyond idle pull from that one market until either the request is filled or that market's available liquidity is exhausted.</td></tr><tr><td><strong>Market Configurator</strong></td><td>The smart contract through which KPK configures parameters (e.g. collaterals, oracles, debt limits) for curated products on Gearbox, typically controlled through timelocked governance.</td></tr><tr><td><strong>Markets V1 Adapter</strong></td><td>A Morpho v2 adapter that allocates a v2 vault's deposits directly into individual Morpho v1 markets. KPK v2 vaults use this adapter to access v1 market liquidity without an intermediate v1 MetaMorpho vault. See <a href="https://docs.morpho.org/get-started/resources/contracts/morpho-market-v1-adapter-v2#morphomarketv1adapterv2">Morpho docs</a>.</td></tr><tr><td><strong>MetaMorpho Vault</strong></td><td>A Morpho v1 vault standard: an ERC-4626 vault that allocates across approved Morpho v1 markets. KPK still operates legacy v1 MetaMorpho vaults for direct V1 depositors; new curation is delivered on v2 vaults.</td></tr><tr><td><strong>Oracle</strong></td><td>A data feed that provides price information to smart contracts. Oracles are monitored for liveness, accuracy, and manipulation risk.</td></tr><tr><td><strong>Permissions Layer</strong></td><td>KPK’s proprietary security framework that strictly scopes the actions curator multisigs can execute, adding an extra layer of control on top of protocol-level role restrictions. <a href="https://kpk.io/permissions-layer/">See more</a>.</td></tr><tr><td><strong>Quota</strong></td><td>A Gearbox-specific parameter that limits the total amount of a given collateral that can be borrowed against in a curated market. Quotas are set by KPK to control exposure.</td></tr><tr><td><a href="/pages/37b8bde73f4124d4be6b7a3264b2b187209e1e7d"><strong>Risk Framework</strong></a></td><td>KPK's proprietary system for evaluating, classifying and monitoring risks that may apply to KPK-curated products.</td></tr><tr><td><a href="/pages/37b8bde73f4124d4be6b7a3264b2b187209e1e7d#tiering-and-allocation"><strong>Risk Tier</strong></a></td><td>A KPK-assigned classification reflecting the risk profile of an asset or strategy considered for inclusion in any KPK-curated product.</td></tr><tr><td><strong>Timelock</strong></td><td>A governance mechanism that enforces a minimum delay between the proposal and execution of critical changes, improving transparency and security.</td></tr><tr><td><strong>Utilisation Rate</strong></td><td>The share of total pool liquidity that is borrowed. High utilisation rates can affect withdrawal availability and borrowing costs.</td></tr><tr><td><strong>Vault</strong></td><td>A smart contract that aggregates deposits and manages funds according to a predefined strategy. KPK Morpho and Euler vaults are ERC-4626 vaults that allocate across underlying isolated lending markets; KPK Gearbox pools are ERC-4626 passive lending pools that lend to the Gearbox Credit Account system.</td></tr><tr><td><strong>Vault V1 Adapter</strong></td><td>A legacy Morpho v2 adapter that routed v2 vault deposits into a single underlying v1 MetaMorpho vault. KPK v2 vaults migrated off this adapter in May 2026 to allocate directly into individual v1 markets via the Markets V1 Adapter.</td></tr></tbody></table>


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