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

# Glossary

### Fixed Term Tranches

Fixed term [tranches](#tranching) have an automatic maturity period after which they become claims on the underlying asset. 

### Perpetual Tranches

Perpetual [tranches](#tranching) have no maturity period. As a result they can be used to resegment volatility indefinitely. 

### Tranching

Tranching is the process of resegmenting the volatility of an underlying asset into two or more different assets with different volatility profiles. In the SPOT protcol, tranches are represented by ERC-20 tokens.


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