Glossary

Key definitions for understanding the Manifest ecosystem

A

Accrued Value One of two valuation methods Manifest uses for its HEIs. Calculates value based on earned appreciation and gradual ownership transfer recognition over time. Assumes ~1/120 monthly recognition of the equity multiplier benefit.

After-Tax NAV Net Asset Value adjusted for estimated taxes that would be due in a liquidation scenario. Reflects the realistic proceeds tokenholders would receive after all obligations.

AMM (Automated Market Maker) Decentralized exchange protocols like Uniswap that enable permissionless token trading through liquidity pools rather than order books.

Abandoned Rewards Reward emissions that would have accrued to $sUSH undergoing the 28‑day unstaking cooldown. During the cooldown those positions earn no rewards; the foregone emissions are redirected ("abandoned") to the Reserve Pool, strengthening first‑loss capital.

C

CDR (Conditional Default Rate) The expected rate of HEI defaults used in NPV calculations. Based on DBRS Morningstar securitization models.

Cooldown Period The 28-day waiting period required when unstaking $sUSH back to $USH. No rewards accrue during this period.

CPR (Conditional Prepayment Rate) The expected rate of early HEI settlements. Per DBRS methodology: grows linearly from 0% to 18% over first year, then remains constant.

D

DBRS Morningstar Rating agency that established HEI securitization standards in 2023. Their methodologies inform Manifest's valuation models.

Duration Matching Aligning the time horizons of assets (long-term HEIs) with liabilities (token redemptions) through staking incentives and liquidity design.

Downside Nadir Pricing Conservative valuation rule: if modeling indicates a property's value is likely to decline to a lower near‑term trough (nadir), the protocol immediately uses that expected nadir as the effective current price for NAV. This accelerates recognition of anticipated declines (but never anticipated gains), preventing low‑risk short capture of expected markdowns and promoting fair, conservative portfolio valuation.

E

Effective Rate Cap The maximum annual return on an HEI, typically 19.99% stated (21.76% when compounded monthly). Protects homeowners from excessive costs in early settlement.

ERC-4626 The tokenized vault standard used for $sUSH staking contract. Provides standardized methods for deposits, withdrawals, and yield accounting.

Equity Multiple The 2x multiplier in HEI contracts. For every dollar invested, the investor receives rights to two dollars of home value appreciation.

H

HEI (Home Equity Investment) Financial instruments providing investment exposure to residential real estate appreciation without property ownership. Structured as options secured by liens.

HPA (Home Price Appreciation) The annual rate at which home values increase. $USH NAV tracks the HPA of properties in Manifest's portfolio, typically 3–5% annually.

I

Intrinsic Value The current settlement value of an HEI based on today's home price and contract terms.

IOL (Investor-Owned Liquidity) Liquidity provided by users in DEX pools, as opposed to protocol-owned liquidity.

L

Liquidity Shape How liquidity is distributed across price ranges. Manifest concentrates liquidity around NAV (flat zone) with progressively steeper slopes at wider deviations to facilitate efficient trading while discouraging extreme dislocations.

Liquidity Coverage Ratio (LCR) Design metric comparing on‑chain $USH AMM liquidity depth (POL + IOL within a tight band around NAV) to floating $USH supply (not staked and not in cooldown). Target >100% to reduce run dynamics; staking + cooldown help maintain this ratio.

M

Manifest Foundation The Cayman foundation company that owns and governs Manifest HEI Issuer I Corporation.

Manifest HEI Issuer I Corporation The British Virgin Islands entity that issues $USH tokens.

N

NAV (Net Asset Value) The daily calculated value of assets backing $USH tokens. Uses the minimum of two valuation methods (NPV, Accrued) for each HEI.

Net Present Value (NPV) The discounted value of expected future HEI cash flows using Federal Funds Rate. Accounts for settlement timing uncertainty.

O

OLTV (Option-to-Loan-to-Value) Combined ratio of senior mortgage debt plus HEI investment to home value. Typically capped at 75-80%.

Origination Partner Specialized companies that source, underwrite, and service HEIs for Manifest. Handle all homeowner-facing operations.

P

POL (Protocol-Owned Liquidity) Liquidity directly owned and managed by Manifest. Initially up to 20% of TVL, designed to ensure stable markets and emergency redemption capacity.

Primary Market The Manifest-operated Uniswap v4 pool where new $USH can be minted when demand exceeds NAV. Requires KYC for direct access.

R

Redemption Event Scenario triggering full portfolio liquidation: either 50-year term expiration or 60% vote by $USH holders.

Rehypothecation Using idle POL funds to generate yield through lending protocols or other strategies, minimizing cash drag.

S

Secondary Market Permissionless DEX trading of $USH outside the primary pool. No KYC required but may trade at premium/discount to NAV.

$sUSH The auto-compounding token received when staking $USH. Captures excess yield from HEI portfolio outperformance.

T

Total Value Locked (TVL) The total value of all assets in the Manifest protocol, including HEIs and working capital.

U

U.S. Asset Holding Co. The Delaware corporation (subsidiary of Manifest BVI) that owns HEIs through trust structures.

$USA Manifest's governance token. Controls fee activation and other protocol parameters.

$USH The core Manifest token providing liquid exposure to U.S. residential real estate. Tracks home price appreciation of the underlying portfolio.

V

Villcaso Corporation The technology and operations provider for Manifest. Delivers infrastructure and valuation services at cost plus 5%.

Value Capture The controlled daily minting of new $USH representing the portion of modeled HEI portfolio returns exceeding tracked HPA (after subtracting any operational/governance slices). Distributed primarily to $sUSH stakers while preserving $USH as pure HPA exposure.

W

Working Capital Elastic pool of cash and cash equivalents maintained for operational needs and liquidity provision. Scales between 1-20% of TVL based on market conditions.

Y

Yield Spread The difference between HEI portfolio returns (~15%) and home price appreciation (3–5%). This ~10–12% spread funds operations and staking rewards.