Defined terms for the annuity market and lifetime income landscape.
Term premium is the additional yield lenders require to hold a longer-maturity bond rather than rolling a series of short-maturity bonds over the same period, compensating for the interest rate risk and uncertainty embedded in the longer commitment.
A time average is the average of an outcome's values experienced by a single agent over a long period of time, treated as a measure of what that one agent actually experiences as the system unfolds.
A time-average return is the geometric mean per-period return realized by an investment held continuously over many periods, equivalent to the time-average growth rate of the invested capital.
A tokenized tontine is a tontine implemented through smart contracts on a distributed ledger, with membership represented as cryptographic tokens, mortality verification handled through identity and oracle systems, and payout execution performed automatically by on-chain code.
