| Asset Tier | Classification that determines how an asset can be used in lending: General (can be used as collateral and borrowed in cross positions), Isolated Collateral (can be used as collateral only in isolated positions), Isolated Debt (can only be borrowed in isolation and is not eligible as cross collateral), or Unlisted (cannot be borrowed or used as collateral). |
| Borrow Factor | Risk multiplier applied to borrowed assets. Stable assets (USDC) have a Borrow Factor of 1.0 (no adjustment); higher-risk assets have factors >1.0, which reduce effective borrowing capacity and increase liquidation risk. |
| Borrow Rate Curve | The interest rate model for a reserve, defined as a set of utilization-rate breakpoints mapping to borrow rates (in basis points). Higher utilization drives higher rates. |
| Close Factor | Maximum portion of a position that can be liquidated per round (typically 10%). Prevents full position wipeout from brief LTV breaches, allowing borrowers to add collateral between liquidation rounds. |
| Collateral Farm | A reward farm attached to a reserve that distributes incentives to depositors (collateral suppliers). |
| Crank | Off-chain bot that triggers on-chain state updates, such as refreshing reserve interest accruals. |
| Cross Mode | Position type allowing multiple collateral and debt assets. Health calculated across all assets combined. More flexible than Isolated Mode but uses more conservative LTV ratios due to multi-asset risk interactions. |
| Debt Farm | A reward farm attached to a reserve that distributes incentives to borrowers. |
| eMode | Efficiency Mode — allows higher LTV ratios for correlated asset pairs (e.g. SOL/mSOL), enabling more capital-efficient borrowing. |
| Flash Loan | An uncollateralized loan that must be borrowed and repaid within the same transaction. Used for arbitrage, collateral swaps, and leveraging. |
| Isolated Mode | Obligation type where a user can only borrow a single isolated asset against their collateral. Used for higher-risk assets. |
| Kink | Point on the borrow rate curve where interest rates escalate steeply (typically at target utilization ~80%). The steep rate increase above the kink incentivizes borrowers to repay and lenders to deposit, pulling utilization back to healthy levels. |
| Lamports | Smallest unit of a token on Solana (e.g. 1 SOL = 1,000,000,000 lamports). Reserve capacity limits and on-chain values are denominated in lamports. |
| Lending Market | A top-level on-chain account that groups reserves together. Each market has its own risk parameters, owner, and oracle configuration. |
| Liquidation Threshold | The LTV ratio at which a position becomes eligible for liquidation. Must be higher than the Loan-to-Value ratio. |
| Loan-to-Value (LTV) | Maximum borrowing power relative to the value of deposited collateral. E.g. 75% LTV means you can borrow up to 75% of your collateral value. |
| Multisig | Multi-signature wallet requiring multiple approvals to execute transactions. Required for all production market ownership. Kamino recommends Squads. |
| Obligation | An on-chain account tracking a user’s deposits and borrows within a market. Each obligation type (Vanilla, eMode, Isolated) is a separate account. |
| Oracle | External price feed providing asset valuations. Kamino supports Scope, Pyth Core, and Switchboard oracles configured per reserve. |
| Protocol Take Rate | Percentage of reserve interest revenue taken by the protocol. Separate from the borrow fee. |
| Reserve | A specific lending pool within a market for a single token (e.g. USDC reserve). Defines rates, limits, and risk parameters for that asset. |
| Scope | Kamino’s oracle aggregator that combines multiple price sources (Pyth Core, Switchboard) for manipulation-resistant pricing. |
| Squads | Solana multisig solution for multi-party transaction approval. Recommended for production market management. |
| Utilization Rate | The ratio of borrowed assets to total deposits in a reserve. Drives the borrow rate via the borrow rate curve. |
| VanillaObligation | The standard, non-isolated, non-eMode obligation type for regular lending positions. |
