Definitions & Quantitative Lexicon

Financial & Engineering Lexicon

Clear definitions of fundamental underwriting concepts, engineering variables, and quantitative metrics powering our computational solvers.

Capitalization Rate (Cap Rate)

The ratio of Net Operating Income (NOI) to property asset value. Used to evaluate unleveraged commercial real estate return.

Depth of Discharge (DoD)

The percentage of a battery's total capacity that has been discharged. LiFePO4 batteries safely achieve 80-90% DoD compared to 50% for Lead-Acid.

Deposition Efficiency

The ratio of the weight of deposited weld metal to the net weight of welding consumables used (typically 85% for MIG, 65% for Stick).

Total Daily Energy Expenditure (TDEE)

The total number of calories your body burns in a 24-hour period factoring in Basal Metabolic Rate (BMR), thermic effect of food, and exercise.

Sequence of Returns Risk (SRR)

The danger that the timing of market drawdowns early in retirement will disproportionately impair the longevity of a portfolio.