# Glossary

`$NECT`**:** `$NECT` refers to Nectar which is Beraborrow's native stable-coin. Whenever you take out an interest-free loan you receive `$NECT`. 

**Den:** Referring to your position in Beraborrow, you create a den when you take out an interest-free loan.

**Liquidation Price:** The liquidation price of a Den is the price at which the position gets liquidated. This occurs when the collateral value drops below the Minimum Collateral Ratio (MCR) for that specific asset. 

**Minimum Collateral Ratio:** The minimum collateral ratio is the lowest amount of debt compared to collateral that won't cause a liquidation. This is a protocol parameter is set depending on the volatility of a specific collateral assets. 

**Redemption:** Redemption involves exchanging `$NECT` for `iBGT.`