# 1.2 Terminology

| Category          | Name                        | Explanation                                                                                                                                     |
| ----------------- | --------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------- |
| Marketplace       | NFT                         | non-fungible Token                                                                                                                              |
| Marketplace       | Fractionization             | The process of turning NFT into tradable Shards                                                                                                 |
| Marketplace       | Shards Market               | Subscription market. After the shards are generated, they are then put into the market for subscription                                         |
| Marketplace       | Secondary Markets           | Secondary markets where users trade for shards.                                                                                                 |
| Pools             | Pool                        | Pools for liquidity mining.                                                                                                                     |
| Pools             | Rank                        | $SHD mining profits are only distributed to the pools being ranked.                                                                             |
| Pools             | Referral Relationship Bonus | This increase a user's Staking Weight in Pools                                                                                                  |
| Token             | Shard                       | Shards generated after NFT securitization                                                                                                       |
| Token             | SHD                         | Tokens issued by the protocol                                                                                                                   |
| Token             | Subscribing Token           | Token used for Shards subscription                                                                                                              |
| Token             | LP Token                    | Liquidity Provider Tokens which you can participate in liqudiity mining with. They come from secondary markets.                                 |
| Users             | Original Owner              | Users who convert their NFTs into tradable shards.                                                                                              |
| Users             | Subscriber                  | Users who stake Tokens to subscribe for Shards in the Shards Market                                                                             |
| Users             | Offeror                     | Users who apply for a tender offer to acquire ownership of NFT                                                                                  |
| Shard Status      | Subscribing                 | After the shard is created, it will enter the 7-day subscription period.                                                                        |
| Shard Status      | Listed                      | After the subscription is successful, the shards will support distribution and free transactions.                                               |
| Shard Status      | Apply for Buyout            | Users with sufficient shards can apply for tender offer.                                                                                        |
| Shard Status      | Buyout                      | Tender offer (buyout)                                                                                                                           |
| Shard Status      | Failed                      | During the subscription period, if the shards do not meet the subscription requirements, the fragementation attempt will be considered failure. |
| Actionable Events | Create                      | The user who securitize NFT and create Shards                                                                                                   |
| Actionable Events | Subscribe                   | Subscription happens immediately after Fragementation.                                                                                          |
| Actionable Events | Settle                      | After the subscription completes, any user can price the shards according to the current subscription volume.                                   |
| Actionable Events | Buyout                      | Acquire fragments at a price higher than the market price.                                                                                      |
| Actionable Events | Vote                        | After initiating a Buyout Tender Offer, it enters the voting stage, and the shard holder decides whether the tender offer can be carried out.   |
| Actionable Events | Improve                     | On the Pools page, users can increase the ranking of a certain pool to make the pool enter the rankings.                                        |
| Actionable Events | Referral                    | Invite other users to get onboard.                                                                                                              |