Protocol terminology used across ILN docs, SDKs, contracts, indexer, and notifications. Terms are sorted alphabetically.
Cross-referenced with
sdk/src/errors.ts,docs/contracts/, anddocs/indexer-data-model.md. When a contract field name and a glossary term collide, the contract field name is canonical (snake_case for storage,UpperCamelCasefor enum variants). Error codes from the SDK useUPPER_SNAKE_CASE.
Invoice state after the payer files an appeal_default request following a
default marking. Admin review is pending and LP default refunds are still
locked. Maps to the Appealed enum variant in
docs/contracts/invoice-contract.md. Terminal
only after the appeal is resolved.
The discount_rate-equivalent parameter that varies over time in a Dutch
auction. On-chain fields: auction_start_rate (initial bps), auction_min_rate
(floor bps), auction_rate_decay_per_hour (decay in bps/hour), auction_started_at.
Built from submit_invoice_auction(…) rather than submit_invoice(…).
Auction Discount Rate is the specific
discount_ratevalue computed by the auction clock at the moment of funding. It is the auction analog of Base Discount Rate below, but updated continuously betweenauction_started_atand the time offund_invoice(…).
The base bps discount_rate submitted by the freelancer at invoice creation
time, before any reputation-based adjustment or auction decay. This is the
field stored on-chain as discount_rate: u32 in the Invoice struct, and is
also exposed as base_discount_rate_bps in the Reputation Contract
when the invoice passes through that hook.
The reputation contract derives an Effective Discount Rate
(effective_discount_rate_bps) by adding a reputation-tier bonus on top of
the Base Discount Rate and then clamping to a configurable floor.
The struct persisted by the Reputation Contract for
each addressed principal (ReputationProfile). Fields: address, payer_score,
invoices_submitted, invoices_paid, invoices_defaulted.
Reputation Score is the integer score (payer_score: u32) inside a
ReputationProfile — a number between 0 and 100+ that summarizes observed
reliability. The two terms refer to the same data (score is to profile
what balance is to account), but Reputation Score is what integrators
see and ReputationProfile is the on-chain struct name.
See: Reputation Contract.
A unit equal to one-hundredth of one percent, so 100 bps equals 1%. ILN uses bps for discount rates, fees, and yield calculations because integer math is safer in contracts and SDKs.
See: Protocol Economics
A safety control that pauses or limits sensitive protocol actions during an incident. In ILN, circuit breakers are relevant to contract funding, settlement, upgrades, indexing, and notification delivery.
See: Security
The percentage discount a submitter accepts in exchange for receiving liquidity
before the payer settles the invoice, expressed in basis points (bps). On-chain
field: discount_rate: u32 in the Invoice struct (see
docs/contracts/invoice-contract.md). A 300 bps
discount means the liquidity provider funds 97% of face value and earns the 3%
spread at settlement.
Canonical pairing: the contract field is
discount_rate. The indexer stores the same value indiscount_rate(seeindexer-data-model.md). The SDK exposes it asdiscountRate(camelCase) only at the language boundary; every persisted artifact and contract ABI uses lowercasediscount_rate.
See also: Effective Yield, Auction Rate.
See: Protocol Economics
The annualized return an LP earns after a Paid settlement. Numerically equal
to the discount rate when settlement is on time: ILN examples commonly
calculate this as (discount_bps / 10000) * (365 / days_to_settlement). "Discount
rate" and "effective yield" name the same number from two perspectives: the
freelancer sees it as a discount, the LP sees it as yield. The reputation
contract additionally defines effective_discount_rate_bps, which adjusts a
base_discount_rate_bps upward for high-reputation payers; see
docs/contracts/reputation-contract.md.
Hash-based Message Authentication Code, a signature-like digest used to verify that a webhook payload came from the expected sender and was not modified. ILN notification receivers should reject webhook requests with missing or invalid HMAC values.
See: Notifications
Stellar's REST API service for account data, transactions, ledgers, assets, and network metadata. ILN tooling may use Horizon alongside Soroban RPC for account and network state.
See: Stellar Primer
A financing model where an invoice holder sells or discounts an unpaid invoice to receive cash before the payer settles. ILN implements a DeFi version where liquidity providers fund invoices on-chain and receive settlement value later.
See: Protocol Overview
The finite state machine an invoice traverses. Defined as the soroban InvoiceStatus
enum and used identically by the contract, the indexer, and the SDK. Sorted
alphabetically below:
| Variant | Meaning | Terminal? |
|---|---|---|
Appealed |
Payer appealed a default | No |
Cancelled |
Submitter cancelled a Pending invoice |
Yes |
Defaulted |
Past due with no payment | Yes |
Disputed |
Payer disputed pre-settlement | No |
Expired |
Never funded and due date passed | Yes |
Funded |
Fully funded, awaiting settlement | No |
Paid |
Settled on time | Yes |
PartiallyFunded |
One or more LPs have contributed but invoice is not fully funded | No |
Pending |
Submitted, awaiting LP funding | No |
See: docs/contracts/invoice-contract.md,
docs/indexer-data-model.md.
An ordered batch of Stellar transactions accepted by network consensus. ILN indexers track ledger ranges to reconstruct invoice events and settlement state.
See: Indexer Data Model
A participant who funds invoices by providing liquidity at the discounted amount. The LP expects to receive the invoice face value at settlement and earns the difference as yield.
See: LP Funding Tutorial
A user-facing flow that lets a notification recipient disable every
notification channel for a Stellar address in a single request, with the
request taking effect immediately and no follow-up confirmation step. In the
ILN notifications service this maps to
POST /preferences/:address/unsubscribe and the tokenized variant
POST /preferences/unsubscribe/token/:token. The tokenized URL is what is
embedded in every outbound email's footer link and is signed with
HMAC-SHA256 over (address, nonce) so it cannot be forged or replayed.
See: Privacy Policy.
The customer or counterparty responsible for settling the invoice. ILN uses payer identity and behavior as part of invoice authorization, settlement, and reputation flows.
See: Submit Your First Invoice
The minimum approval threshold required for a governance or administrative decision. ILN uses quorum concepts for maintainer sign-off, governance changes, and mainnet readiness decisions.
See: Governance Guide
A score that represents observed reliability for submitters, payers, or related protocol actors. ILN reputation can help liquidity providers assess invoice risk and discount expectations.
See: Reputation Contract
The point where the payer's obligation is marked as paid and the protocol releases or accounts for final value owed to the liquidity provider. Settlement changes invoice state and is a core event for indexer and notification consumers.
See: Invoice Contract
A UPPER_SNAKE_CASE string code exposed on every class in
sdk/src/errors.ts (e.g. INVALID_DISCOUNT_RATE,
PAYER_REPUTATION_TOO_LOW, INSUFFICIENT_BALANCE). Each class has a stable
URL fragment #<lower_snake> in docs/errors.md. Display strings
in markdown UI use the snake_case form (e.g. invalid_discount_rate) while
the SDK emits the UPPER_SNAKE_CASE form at runtime.
Stellar's smart contract platform, where contracts are compiled to WebAssembly and run with Stellar ledger integration. ILN contract logic for invoices, reputation, and governance is designed for Soroban.
See: Stellar Primer
A Soroban contract interface that represents Stellar assets for smart contract use. ILN uses SAC-compatible assets such as USDC-style stablecoins for funding and settlement flows.
See: Multi-Token Support
The account or service that submits an invoice transaction to the network. The submitter may be the invoice owner directly or an authorized integration using the SDK or CLI.
See: SDK Quickstart
A delay between approval and execution of a sensitive action, such as an upgrade or parameter change. Timelocks give users and maintainers time to inspect pending governance changes before they take effect.
See: Governance Guide
A Stellar account's explicit opt-in to hold a non-native asset. Users must have the correct trustline before receiving or transacting certain Stellar assets outside pure Soroban contract custody.
See: Stellar Primer
External Data Representation, the binary serialization format used by Stellar for transactions, operations, ledger entries, and contract data. ILN SDK and CLI code must encode and decode XDR exactly to avoid signing or submission bugs.
The return earned by a liquidity provider for funding an invoice. In ILN, yield usually comes from the discount between the funded amount and the invoice face value paid at settlement. Numerically equal to the Discount Rate expressed in basis points.
See: Protocol Economics
Hash-based Message Authentication Code, a signature-like digest used to verify that a webhook payload came from the expected sender and was not modified. ILN notification receivers should reject webhook requests with missing or invalid HMAC values.
See: Notifications
Stellar's REST API service for account data, transactions, ledgers, assets, and network metadata. ILN tooling may use Horizon alongside Soroban RPC for account and network state.
See: Stellar Primer
A financing model where an invoice holder sells or discounts an unpaid invoice to receive cash before the payer settles. ILN implements a DeFi version where liquidity providers fund invoices on-chain and receive settlement value later.
See: Protocol Overview
An ordered batch of Stellar transactions accepted by network consensus. ILN indexers track ledger ranges to reconstruct invoice events and settlement state.
See: Indexer Data Model
A participant who funds invoices by providing liquidity at the discounted amount. The LP expects to receive the invoice face value at settlement and earns the difference as yield.
See: LP Funding Tutorial
The customer or counterparty responsible for settling the invoice. ILN uses payer identity and behavior as part of invoice authorization, settlement, and reputation flows.
See: Submit Your First Invoice
The minimum approval threshold required for a governance or administrative decision. ILN uses quorum concepts for maintainer sign-off, governance changes, and mainnet readiness decisions.
See: Governance Guide
A score that represents observed reliability for submitters, payers, or related protocol actors. ILN reputation can help liquidity providers assess invoice risk and discount expectations.
See: Reputation Contract
The point where the payer's obligation is marked as paid and the protocol releases or accounts for final value owed to the liquidity provider. Settlement changes invoice state and is a core event for indexer and notification consumers.
See: Invoice Contract
Stellar's smart contract platform, where contracts are compiled to WebAssembly and run with Stellar ledger integration. ILN contract logic for invoices, reputation, and governance is designed for Soroban.
See: Stellar Primer
A Soroban contract interface that represents Stellar assets for smart contract use. ILN uses SAC-compatible assets such as USDC-style stablecoins for funding and settlement flows.
See: Multi-Token Support
The account or service that submits an invoice transaction to the network. The submitter may be the invoice owner directly or an authorized integration using the SDK or CLI.
See: SDK Quickstart
A delay between approval and execution of a sensitive action, such as an upgrade or parameter change. Timelocks give users and maintainers time to inspect pending governance changes before they take effect.
See: Governance Guide
A Stellar account's explicit opt-in to hold a non-native asset. Users must have the correct trustline before receiving or transacting certain Stellar assets outside pure Soroban contract custody.
See: Stellar Primer
External Data Representation, the binary serialization format used by Stellar for transactions, operations, ledger entries, and contract data. ILN SDK and CLI code must encode and decode XDR exactly to avoid signing or submission bugs.
The return earned by a liquidity provider for funding an invoice. In ILN, yield usually comes from the discount between the funded amount and the invoice face value paid at settlement.
See: Protocol Economics