📗Glossary

Word	Definition
AML	Combating money laundering and terrorist financing. The financial sector is exposed to the risk of money laundering and terrorist financing. As such, it is subject to anti-money laundering and combating the financing of terrorism (AML/CFT) provisions.
Buy Back & Burn	an utility token business model aimed at buying back service tokens using the protocol's cashflows.
FIAT	Fiat money is a type of currency that is not backed by a commodity, such as gold or silver. It is typically designated by the issuing government to be legal tender, and is authorized by government regulation. Since the end of the Bretton Woods system in 1971, the major currencies in the world are fiat money. e.g. EUR (euro) or USD (United States Dollar).
(Blockchain) Layers	Level 1 blockchains (or "layer 1" or "L1") are generally open-source software programs, which create a network of independent computers (known as decentralization) that create a consensus on the content of the blockchain. There are several types of consensus (proof of work, proof of stake). L1s can be permisionless (anyone can participate) or permisioned (the addition of a participant is subject to conditions). Level 2 blockchains build on the content of Level 1 blockchains, but correct the impact of decentralization on transaction speed, volume and cost. Level 3 blockchains are decentralized software and interfaces that enable the creation of an end-user application. IBX uses several blockchains both for the main register of its users' assets and to connect with the listed assets.
LCB-FT	"Lutte contre le blanchiment des capitaux et le financement du terrorisme" (French). See AML.
Protocols	A protocol is a set of rules and procedures that govern how a decentralised asset or network operates, defining how transactions are verified, recorded, and secured across the distributed ledger. These protocols form the foundation of various cryptocurrency ecosystems, enabling features like decentralized finance (DeFi), smart contracts, and tokenization while establishing the consensus mechanisms that maintain the integrity and security of the network. IBX lists protocol tokens that are utility tokens.
OTC	over-the-counter method of exchange outside the public market, with a price freely determined by the seller and the buyer. Generally used to exchange large blocks of tokens that the cash market could not absorb. IBX offers its customers an OTC service.
Security token	In the EU a security token is an asset based on distributed ledger technology (DLT) that represents the ownership right of an instrument, which can be either a freely convertible security, i.e. a security subject to the MiFID Regulation, or the so-called non-MiFID security (see also Securities Market Act). The US SEC refers to the Honey Test to determine whether an investment contract exists and a security is being sold. According to this test, an investment contract exists if 1) there’s an investment of money, 2) in a joint enterprise, 3) with the expectation of a profit, 4) which is obtained through the efforts of others. Categories: a) Equity Securities: refers to stocks or a share of ownership in a company b) Debt Securities: allow companies to borrow money from investors and repay the loan with interest c) Derivative Securities: contracts between 2 or more parties d) Hybrid Securities: Hybrid securities include debt and equity securities characteristics. A typical example of a hybrid security would be a convertible bond, a corporate bond that can be converted into shares of stock for the company providing the bond. IBEx do not list Security tokens.
Smart Wallet ("Contract Account")	IBEx is creating "Contract Accounts" for each user. Lean more about Contract accounts (smart contracts) here. IBX is a custody service, which means we manage and secure our users' assets.
Spot	token exchange market with cash payment through an anonymous aggregated order book of buyers and sellers. IBX can list tokens on a Spot.
Stablecoin	any cryptocurrency designed to have a relatively stable price, typically through being pegged to a commodity or currency or having its supply regulated by an algorithm. MiCA regulation limit the use of this type of cryptocurrency on centralized exchanges like IBX. IBX can list MiCA proof stablecoins tokens.
Utility token	type of token whose main function is to provide rights and/or access to a service or product offered by a company or decentralized protocol (Protocol tokens). e.g.: payment or a service, vote decisions, benefit of rewards. IBX can list utility tokens.