1. The heartbeat is a timing rule that ensures updates happen at regular intervals. For example, with a 1-hour heartbeat, the system will attempt an update at least every 1 hour, even without major changes. This prevents data staleness and detects delays or outages quickly.

2. The deviation threshold defines how much the reserve balance must change before a new onchain update is triggered. For instance, with a 5% threshold, the system only publishes a new value if the balance moves by 5% or more since the last update. This avoids unnecessary updates due to minor fluctuations.

3. Tokens Supply is the total amount of tokens currently in circulation, issued by the tokenization platform. Each unit should be backed by a verified reserve, ensuring a transparent 1:1 or over-collateralized ratio.

4. Collateral reserves are real-world assets, such as cash or public securities, held to back issued tokens. Fact Finance verifies their existence and value through direct connections with the custodian.

5. Over or under collateralization refers to the difference between the verified reserves and the circulating token supply. A positive gap indicates excess collateral (a safety buffer), while a negative gap signals insufficient reserves and potential undercollateralization risk.

6. Fact Finance independently verifies the relationship between the capital raised on-chain and the allocation data from the financial accounts where the assets are held, using a direct Open Finance connection to all Decentral bank accounts. In addition, Decentral hedges all USD positions against BRL. For accounting purposes, this audit considers an exchange rate of R$5.26 per USD.