Glossary

$MSTR

The protocol token. Used for governance, staker compensation, and protocol fee accrual.

BTC Make-Whole

A protection mechanism for USDT stakers. If the market value of reserved $MSTR at maturity is less than the USDT taken from stakers for Note repayment, the protocol pays the difference in BTC.

Bond Series

A discrete capital raise with immutable terms published at launch. Each series operates independently with its own ledger, obligations, and (for USD series) backstop pool.

Circuit Breaker

An automated safety control that pauses dependent protocol operations when oracle data shows sudden large price movements or quality degradation.

Exercise (Warrant)

The action of paying USDT par to the protocol to settle a Warrant NFT. Exercise proceeds credit the series ledger.

Face Value

The principal amount a Note NFT represents. Denominated in BTC for BTC bonds and USD for USD bonds.

Maturity

The date when a bond series settles. Note NFTs are repaid and staker compensation is distributed.

Note NFT

A non-fungible token representing the principal repayment claim for a specific bond series. Settled at maturity per series rules.

Oracle

A system that provides price data to the protocol. MegaStrategy uses multi-venue, time-weighted oracles with outlier filtering and staleness detection.

Par Value (Warrant)

The USDT amount a warrant holder pays to exercise. For BTC bonds, par equals the USD value of the BTC face amount at issuance.

Pool Shares

Proportional ownership in a USDT Backstop Pool. Determines a staker's entitlement to withdrawals, rewards, and compensation.

Primary Bond Market

The market where new bond series are issued. Investors subscribe and receive Note + Warrant NFTs.

Pro-Rata

Proportional distribution based on ownership share. Used for backstop withdrawals, rewards, and compensation.

Reserved Pre-Minted $MSTR

$MSTR tokens minted after a USD bond sale using TWAP pricing. Earmarked for staker compensation at maturity and not circulating until then.

Secondary Market (NFT Marketplace)

The market where Note and Warrant NFTs trade between users after primary issuance.

Series Ledger

Accounting that tracks a specific bond series' inflows and allocations. Includes warrant exercise proceeds, buffers, and settlement reserves.

Settlement Waterfall

The priority order for repaying Note NFTs at maturity. Typically: series ledger first, then backstop pool (USD series), then treasury (if policy permits).

Staleness Threshold

The maximum age for valid oracle price data. Prices older than this threshold trigger an unhealthy oracle state.

Surplus USDT

Staked USDT in a backstop pool that is not required to backstop current obligations. Withdrawable pro-rata by stakers.

Tenor

The period between bond sale completion and maturity. During tenor, warrants can be traded and exercised, and (for USD series) stakers can make pro-rata withdrawals.

Treasury NAV

The total BTC held by the protocol treasury. The core asset that bond series work to grow.

TWAP (Time-Weighted Average Price)

A price calculated by averaging prices over a time window. Resistant to short-term manipulation. MegaStrategy uses 24-hour TWAPs for critical operations.

USDT Backstop Pool

A series-specific pool of staked USDT that supports repayment of USD bond Note NFTs. Funded by stakers who earn rewards for underwriting series risk.

VWAP (Volume-Weighted Average Price)

A price calculated by weighting prices by trading volume. May be used alongside TWAP for specific protocol operations.

Warrant NFT

A non-fungible token representing option-like upside for a specific bond series. Exercised by paying USDT par to the protocol.