> For the complete documentation index, see [llms.txt](https://filmfund.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://filmfund.gitbook.io/docs/appendices/glossary-of-terms.md).

# Glossary of Terms

1. **$FFA Token:** The native utility token of the FilmFund.io platform. Used for staking, platform transactions, securing allocation in security tokens, and participating in governance. It is not intended to be classified as a security.
2. **Security Token:** A digital token that represents ownership rights in a real-world asset (e.g., equity, profit rights, or royalty rights in a film project). Security tokens are subject to compliance regulations based on securities laws.
3. **Staking:** The process of locking up tokens for a specified period to earn rewards or secure allocations in new projects. On FilmFund.io, staking $FFA tokens secures allocations in film security tokens.
4. **Profit Rights:** A type of security token offering where the token holder is entitled to receive a share of the film’s profits. This structure allows for compliant distribution of film revenues to investors.
5. **Hard Cap:** The maximum amount of funding a project aims to raise during its financing round. Once the hard cap is reached, no additional investments are accepted.
6. **Soft Cap:** The minimum amount of funding required for a project to be considered viable. If a project does not reach its soft cap, all investments are refunded.
7. **KYC/AML:** “Know Your Customer” and “Anti-Money Laundering” are processes to verify the identity of users and ensure compliance with international regulatory standards.
8. **Token Burn:** A deflationary mechanism where a certain percentage of tokens are permanently removed from circulation. This helps reduce supply and potentially increase the value of the remaining tokens.
9. **Launchpad:** A platform that helps new projects raise funds and gain visibility by listing them for a community of investors.
10. **DAO (Decentralized Autonomous Organization):** A governance structure where decisions are made collectively by token holders through a voting mechanism, enabling community-driven development and management.