> For the complete documentation index, see [llms.txt](https://docs.zipper.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.zipper.trade/glossary-and-resources/key-terms.md). # Key Terms
This section provides definitions for **important terminology** related to **Zipper, the Fabric ecosystem, and general crypto concepts**. Understanding these terms will help users navigate the documentation and interact with Zipper more effectively. *** ### **Zipper-Specific Terms** #### **Zipper** A decentralized protocol on **Fabric** that allows users to **zip (wrap) and unzip (unwrap) assets**, bringing external blockchain assets into the Fabric ecosystem. #### **Zipping (Wrapping)** The process of **depositing an external blockchain asset into Zipper**, where it is stored securely in a vault, and receiving an equivalent **zAsset** on **Fabric**. #### **Unzipping (Unwrapping)** The process of **returning a zAsset to its original blockchain**, where Zipper burns the zAsset on **Fabric** and releases the equivalent asset to the user on the originating chain. #### **zAssets** Fabric-compatible, **tokenized representations of external blockchain assets** created when users zip assets into Zipper. **Each zAsset is fully backed 1:1** by its original asset. #### **Deposit Address** A **unique blockchain address assigned to a user** where external assets are sent to be zipped. Deposit addresses are controlled by **Zipper’s TEE-secured vaults** and later consolidated into the main vault. #### **Main Vault** The **primary storage location for zipped assets** before they are unzipped. Zipper consolidates funds from multiple deposit addresses into the main vault for efficient asset management. #### **Zip/Unzip Fees** The **network costs** associated with zipping and unzipping assets. Zipper does not charge additional fees—**only blockchain network fees apply**. *** ### **Fabric Ecosystem Terms** #### **Fabric** A high-performance **Layer 1 blockchain** designed for **AI integration, decentralized oracles, and scalable infrastructure**. It serves as the foundation for Zipper and other ecosystem applications. #### **Polyester** A **decentralized exchange (DEX)** built on Fabric that allows users to **trade zAssets** with an order book model similar to a centralized exchange (CEX). #### **FabricScan** The **block explorer for Fabric**, allowing users to verify **zAsset contract addresses, transactions, and blockchain activity** for full transparency. *** ### **Security & Compliance Terms** #### **Trusted Execution Environment (TEE)** A **hardware-based security technology** that **isolates and protects private keys and cryptographic operations** from external access, even if the host system is compromised. Zipper’s vaults use **TEE to prevent unauthorized access**. #### **Chain Monitoring** A compliance mechanism that **tracks blockchain transactions for illicit activity**, ensuring **sanctioned wallets, stolen funds, and OFAC-listed addresses** are blocked from using Zipper. #### **1:1 Backing** A fundamental security measure ensuring that **every zAsset on Fabric is fully backed** by its original asset in Zipper’s vaults, maintaining **full transparency and redeemability**. *** ### **General Crypto & Blockchain Terms** #### **Blockchain** A **decentralized, immutable ledger** that records transactions across multiple nodes, ensuring security, transparency, and resistance to censorship. #### **Smart Contract** A **self-executing contract stored on the blockchain** that automatically enforces rules and conditions, eliminating the need for intermediaries. #### **Layer 1 (L1)** A **base blockchain network** that processes transactions and provides security. Examples include **Fabric, Ethereum, Solana, and Bitcoin**. #### **Layer 2 (L2)** A **secondary network built on top of an L1 blockchain** to improve scalability and reduce fees (e.g., Optimistic Rollups on Ethereum). **Fabric is an L1, not an L2.** #### **Decentralized Exchange (DEX)** A **peer-to-peer trading platform** that allows users to trade assets **without intermediaries**. Polyester is the primary DEX on Fabric. #### **Centralized Exchange (CEX)** A **traditional cryptocurrency exchange** operated by a central authority (e.g., Binance, Coinbase) where users trade assets through an intermediary. #### **Liquidity** The **availability of assets** in a market, determining how easily they can be traded without significant price changes. #### **Bridging** The process of **moving assets between blockchains**, often using smart contracts or centralized custodians. **Zipper is NOT a bridge - it only zips and unzips assets into Fabric.** --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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