Summary of Terms

Table of Contents

1. Bitcoin Bond
2. Bitcoin Bond Line of Credit (BBLOC)
3. Bitcoin Line of Credit (BLOC)
4. Bitcoin Powered Mortgage (BPM)
5. Decentralized Autonomous Organization (DAO)
6. Decentralized Finance (DeFi)
7. Delta-Neutral Position
8. Fair Market Valuation (FMV)
9. Gross Domestic Product (GDP)
10. Home Equity Contribution (HEC)
11. Internet Economy
12. Liquidity Pool
13. Loan-to-Value Ratio (LTV)
14. PRN Blockchain Notary and Title Registry
15. Peoples Reserve Blockchain Oracle
16. Peoples Reserve (PRN) Ecosystem
17. Peoples Reserve Stablecoin (prUSD)
18. Peoples Reserve Vaults
19. PRN Marketplace
20. PRN Loyalty Token
21. Pristine Collateral
22. Proof of Ownership
23. Real Estate Tokenization
24. RWA Property Claim
25. Self Repaying Mortgage (SRM)
26. Smart Contract
27. Trapped Equity
28. We The People

Bitcoin Bond

A principal protected note that fuses U.S. Treasury (UST) debt with Bitcoin to deliver
cash flow with downside protection.

The UST portion produces cash flow and guarantees principal protection, while Bitcoin
price performance produces the yield on the bond. The result is designed to be a low
risk, high reward cash flow vehicle available to individuals, businesses, corporations,
and institutions. Bitcoin Bonds are offered through the Peoples Reserve Principal Protected Vault.

Bitcoin Bond Line of Credit (BBLOC)

A line of credit secured by a Bitcoin Bond allocation, designed to unlock liquidity from
a principal protected position.

The BBLOC has a maximum initial LTV of 100% required to initiate the loan. In practice,
borrowing is available against the U.S. Treasury (UST) portion of the Bitcoin Bond
allocation, so the usable borrowing capacity reflects that UST portion rather than the
full headline figure.

Bitcoin Line of Credit (BLOC)

A line of credit secured by Bitcoin posted as pristine collateral, giving clients access
to capital without selling their Bitcoin.

The BLOC has a maximum initial LTV of 50% required to initiate the loan. Clients can
overcollateralize beyond that at opening for additional buffer. Borrowing against Bitcoin
lets clients unlock liquidity now while keeping exposure to Bitcoin upside.

Bitcoin Powered Mortgage (BPM)

The Peoples Reserve line of mortgage products that use Bitcoin as pristine collateral
to lower the cost of home financing over time.

With Bitcoin posted as collateral, the value growth of the collateral can outpace the
burden of the debt. As Bitcoin performance increases the collateral to loan value ratio,
the interest rate of the mortgage decreases, which lowers the monthly payment over the
life of the loan. Claiming the property in the ecosystem also generates a Home Equity
Contribution (HEC) earn rate, and a higher PRN Loyalty Tier increases how much the HEC
reduces the monthly payment.

Decentralized Autonomous Organization (DAO)

An organization that eliminates human error or manipulation by placing decision-
making power into the hands of an automated system and a crowdsourced process.

    
The Peoples Reserve Marketplace DAO will at first serve as a simple
voting mechanism for community-based decisions for the PRN Ecosystem.
Eventually, Peoples Reserve goal is to create a fully decentralized DAO to
pass control and operation of the PRN Ecosystem to We the People, where it
properly belongs.

Decentralized Finance (DeFi)

Blockchain and smart contract ecosystems that offer peer-to-peer financial services.

    
Initially, Peoples Reserve will be partially decentralized in order to bridge the
traditional system to the digital system

Delta-Neutral Position

Portfolio position designed to even out (neutralize) a portfolio’s response to
market movements.

    
The strategy is used to maintain position value or limit the change of the
position’s net value to zero, regardless of market movements. This position
strategy is used in multiple Peoples Reserve products and services.

Fair Market Valuation(FMV)

The liquid price of an asset as determined by the marketplace (the price at which
an asset would immediately sell on the open market).

    
In the real estate marketplace owners are able to claim their property’s
“Tax Assessed Value”. This is a government appraised and approved value
for tax purposes. A property listed for its tax assessed value would sell
quickly (making it a liquid value) because tax assessments are undervalued
compared to prices in the open market.

Gross Domestic Product (GDP)

The total monetary or market value of all the finished goods and services produced
within a country’s borders in a specific time period.

    
As a broad measure of overall domestic production, GDP functions
as a comprehensive scorecard of a given country’s economic health.
The calculation of a country’s GDP encompasses all private and public
consumption, government outlays, investments, additions to private
inventories, paid-in construction costs, and the foreign balance of trade.
Exports are added to the value and imports are subtracted.

Home Equity Contribution (HEC)

A designated monthly cash flow generated when a property is claimed in the PRN Ecosystem,
paid from the RWA Funding Reserves.

The HEC earn rate is applied to reduce a borrower monthly mortgage payment. A higher PRN
Loyalty Tier increases how rewarding the HEC benefit is, directly lowering the amount owed
each month.

Internet Economy

An aggregate economy of the world with true free market policies governed by
computer code. The fastest growing and most productive economy in the world.

    
Peoples Reserve leverages the internet economy crypto credit markets for
traditional asset owners who wish to earn interest with their real-world equity.

Liquidity Pool

A crowdsourced pool of cryptocurrencies or tokens locked in a smart contract
that is used to facilitate trades.

    
Instead of traditional markets of buyers and sellers, many decentralized
finance (DeFi) platforms use automated market makers (AMMs), which allow
digital assets to be traded in an automatic and permissionless manner
through the use of liquidity pools. Peoples Reserve will launch multiple liquidity pools    
including PRN/USDC, prUSD/USDC, and prUSD/USDT for true 24/7 free market liquidity.

Loan-to-Value Ratio(LTV)

An often used ratio as an assessment to lending risks and whether a lender will
extend credit to a borrower.

    
Maximum initial LTV depends on the product. The Bitcoin Line of Credit (BLOC) has a
maximum initial LTV of 50% to initiate the loan. The Bitcoin Bond Line of Credit (BBLOC)
has a maximum initial LTV of 100% to initiate the loan, with borrowing available against
the UST portion of the Bitcoin Bond allocation.
Borrowers are required to post more than sufficient collateral to cover the
principal plus interest therefore default risk is eliminated.

PRN Blockchain Notary and Title Registry

Digital asset services that enable real world asset owners to complete the proof of 
ownership process and establish an RWA Property Claim in the PRN Ecosystem. 

Once terms of service are accepted and proof of ownership is verified, the
Notary and Title Registry services record the real-world asset as an RWA Property Claim. The
RWA Property Claim represents authentic ownership (title/deed) within the internet economy
and enables that equity to begin to earn interest.

Peoples Reserve Blockchain Oracle

An automated independent data system that maintains the key operating functions of Peoples Reserve.

The Peoples Reserve Blockchain Oracle automatically records repayments and
also accounts for all transactions made by clients. Interest repayments, outstanding
balances, and up-to-date loan limits are automatically maintained at all times.

Peoples Reserve (PRN) Ecosystem

All products and services (EARN, BORROW, SPEND) offered by Peoples Reserve.

The term “PRN Ecosystem” is a reference to Peoples Reserve products and
services as a whole.

Peoples Reserve Stablecoin (prUSD)

The native stablecoin of the PRN Ecosystem.

prUSD is a 1:1 reserve backed stablecoin. Reserves consist of US Treasury Bills,
USD, USDC and USDT. prUSD is always redeemable for $1 and trades at a fixed 
rate of $1 in the PRN ecosystem. 

Peoples Reserve Vaults

An innovative product of the PRN Ecosystem that empowers traditional asset
owners to compound the earnings from their RWA Property Claim within the internet economy.

prUSD can be repositioned into a variety of different strategically
designed Peoples Reserve Vaults (prUSD Arbitrage Vault, Inflation Hedge Vault)
in order to increase earnings and yield potential.
 

PRN Marketplace

The place where We the People can claim proof of ownership of our real-world
assets as RWA Property Claims.

The PRN Marketplace bridges trapped real-world asset equity to the internet
economy’s digital grid in the form of an RWA Property Claim. Imagine the PRN Marketplace as a cloned
digital grid of the real physical world. Unless you claim your ownership on the digital
grid then you cannot earn interest with that value within the internet economy.

PRN Loyalty Token

The digital loyalty token of the PRN Ecosystem. Holding PRN unlocks loyalty tier
benefits across all Peoples Reserve products and services.

The PRN Loyalty Token gives holders a wide range of benefits within the PRN
Ecosystem, including loyalty tier privileges, lower borrowing rates (APR), higher
earning rates (APY), discounted fees, and participation rewards. 

Pristine Collateral

The use of Bitcoin as the highest quality form of collateral, treated as a settlement
layer of liquid equity rather than an asset to speculate on.

Because Bitcoin is scarce, liquid, and independent of centralized manipulation, Peoples
Reserve treats it as pristine collateral across its borrow products. Posting Bitcoin as
pristine collateral reduces lender risk, which is what allows borrowers to access lower
interest rates while keeping ownership and upside of the underlying asset.

Proof of Ownership

The asset ownership verification process completed through the PRN Blockchain
Notary and Title Registry services before real-world value is bridged to the internet
economy as an RWA Property Claim.

Peoples Reserve allows asset owners to depend on the PRN blockchain and
internet economy grid for the verification and truth concerning asset value
and ownership. The Bitcoin blockchain records value and ownership in a fraud
proof and trustworthy manner.

Real Estate Tokenization

The process of creating virtual tokens that represent ownership of a real estate asset.

Thus far, entrepreneurs have attempted to digitize traditional financial products
to offer digital asset owners access to traditional real estate investments.
However, Peoples Reserve focus is on creating new and innovative products,
services, and asset management solutions that offer traditional asset owners
access to the internet economy’s crypto credit markets.

RWA Property Claim

A digital claim that represents authentic ownership of a real-world asset, such as property, within the PRN Ecosystem.

When a real-world asset owner completes the proof of ownership process through the
PRN Blockchain Notary and Title Registry, the asset is recorded as an RWA Property
Claim. The claim bridges trapped real-world equity to the internet economy, where
it can begin to earn interest. Claiming a property in the ecosystem also generates
a Home Equity Contribution (HEC) earn rate.

Self Repaying Mortgage (SRM)

A Bitcoin Powered Mortgage product structured so that the responsible saving of Bitcoin
works to pay down the home over time.

The borrower posts Bitcoin as collateral, which reduces lender risk and lowers the interest
rate. If Bitcoin appreciates, the borrower can keep the collateral and benefit from even
lower rates, or use a portion of the appreciated Bitcoin to pay off the mortgage early. If
Bitcoin declines, the interest rate adjusts to reflect the increased risk, and the borrower
is never forced to sell, with options such as posting more collateral available.

Smart Contract

A self-executing code or protocol that carries out a set of instructions that is verified
on the blockchain. These contracts are trustless, autonomous, decentralized, and
transparent; they are irreversible and unmodifiable once deployed.

While smart contracts have several use cases, some of the most popular are
various financial contracts (loans, derivatives, trading). They can also be used for
legal contracts, identity management, and numerous other use cases.

Trapped Equity

Real-world asset value that cannot be accessed by the owner of the asset
without adding a liability such as a home equity line of credit (HELOC) or outright
selling the asset.

Owners of non-mortgaged/financed assets have no other option other than
borrowing against their asset, or outright selling their asset, to recognize
equity value. PRN lets owners claim their asset’s value in the internet
economy for use in the crypto credit markets.

We The People

The community of asset owners who wish to unlock the value of their real-world
assets to earn interest in the internet economy.

The official motto of Peoples Reserve.