Adapter
A smart contract that translates agent instructions into protocol-specific calls. Adapters are audited and whitelisted - agents can only interact with DeFi through these approved intermediaries.Agent Operator
The human who deploys and manages a TRECC AI agent. The operator posts collateral, configures the agent’s strategy, and bears financial responsibility for the agent’s actions.Agent Registry
The on-chain smart contract that records every registered agent - linking its operator, signing key, and wallet address. Mints identity tokens upon registration.APY (Annual Percentage Yield)
The annualised rate of return on a deposit, including compounding. If a protocol offers 8% APY, a 1,000depositwouldearnapproximately80 over a full year.
Bad Debt
A loss that exceeds the agent’s posted collateral. When this happens, the Insurance Fund covers the shortfall so lenders don’t absorb the loss.Base Sepolia
An Ethereum Layer 2 testnet where the TRECC Vault and agent wallets operate. Used for testing before mainnet deployment.
Collateral
USDC locked by an operator in the Risk Engine as a security deposit. If the agent loses money, the collateral absorbs the loss before lender funds are affected.Composable
A property of tokens and protocols that allows them to interoperate - one protocol’s output token can be used as input to another. tUSDC is composable because it follows the ERC-4626 standard.
DeFi (Decentralised Finance)
Financial protocols built on blockchains that operate without centralised intermediaries. Examples include Aave (lending), Uniswap (trading), and Compound (lending).Defence in Depth
A security strategy using multiple independent layers of protection. If one layer is breached, others continue to function. TRECC uses five layers: hardware isolation, execution module, whitelist, risk limits, and insurance.
ERC-20
The standard interface for fungible tokens on Ethereum. USDC and tUSDC are both ERC-20 tokens.ERC-721
The standard interface for non-fungible tokens (NFTs) on Ethereum. TRECC uses ERC-721 for agent identity tokens.ERC-4626
A standard for tokenised yield-bearing vaults. The TRECC Vault follows this standard, issuing tUSDC shares that automatically appreciate as yield accumulates.ERC-8004
A standard for autonomous agent identity and reputation. Defines how agents establish on-chain identity, accumulate reputation, and have that reputation verified by other protocols.Ecosystem Integration
An external tool, network, or protocol that TRECC connects to. Examples include wallet infrastructure, key management providers, or DeFi lending protocols.Execution Module
The smart contract “leash” between an agent’s signer and its wallet. Intercepts every transaction and only allows calls to whitelisted adapters.
Hardware Security Enclave (HSE)
A tamper-proof hardware chip that generates and stores cryptographic keys. The key never leaves the chip - all signing operations happen internally. Used to protect agent signing keys.Health Factor
A measure of how safe an agent’s position is relative to its obligations. When health drops below the critical threshold, automated liquidation is triggered.
Insurance Fund
A protocol reserve that covers bad debt - losses exceeding an agent’s collateral. Funded by fees from successful agent trades. Only the Risk Engine can draw from it.
Liquidation
The automated process of force-closing an agent’s position when its health factor drops below the safety threshold. Recovered capital is returned to the vault, and losses are deducted from collateral.Liquidity Provider (LP)
A user who deposits capital into the TRECC Vault. LPs earn yield from AI agent activity without actively managing positions. Also called “lenders.”
On-chain
Data or logic that lives directly on the blockchain - publicly verifiable, immutable, and not controlled by any single entity.Overcollateralised
A lending model where borrowers must deposit more collateral than they borrow (e.g., deposit 150toborrow100). Most DeFi lending protocols work this way. TRECC is the opposite - undercollateralised.
Prompt Injection
An attack where a malicious input tricks an AI into performing unintended actions. In TRECC, the Execution Module and whitelist prevent prompt injection from having any effect on fund movement.
Reputation Score
A numerical score stored on-chain that reflects an agent’s borrowing history. Increases with successful repayments, decreases sharply with liquidations. Determines borrowing capacity and collateral requirements.Risk Engine
The smart contract gatekeeper that authorises all borrows from the vault. Checks identity, reputation, and collateral before releasing capital. Also monitors health factors and triggers liquidations.
Smart Wallet
A programmable wallet implemented as a smart contract (rather than a simple private key). Allows complex access controls like the Execution Module to be attached permanently.Soulbound
A token that cannot be transferred after minting. TRECC agent identity tokens are soulbound - they permanently belong to the agent that registered them.
tUSDC
The receipt token issued by the TRECC Vault when USDC is deposited. Represents proportional ownership of vault assets. Appreciates in value as yield accumulates.TRECC Vault
The shared capital pool where lenders deposit USDC and agents borrow from. Implements ERC-4626 for standardised share accounting.
Undercollateralised
A lending model where borrowers post less collateral than they borrow (e.g., post 650toborrow5,500). Higher capital efficiency but requires additional safeguards - which is what TRECC provides.USDC
A stablecoin pegged 1:1 to the US dollar. The base currency used throughout the TRECC protocol for deposits, borrowing, and repayments.
Whitelist
A registry of approved smart contracts that agents are permitted to call. Any transaction targeting a non-whitelisted address is automatically rejected by the Execution Module.
