> ## Documentation Index
> Fetch the complete documentation index at: https://docs.magna.so/llms.txt
> Use this file to discover all available pages before exploring further.

# Key Definitions

> Below are the core primitives that each user of Magna needs to understand in order to effectively use the platform as intended.

**1) Stakeholder**

A stakeholder is a user on the Magna platform who is the recipient of one or more allocations. A stakeholder has attributes including an optional name and an email and/or wallet address. A stakeholder could be, for example, an employee, investor, or community token recipient.

Stakeholders are able to log in with their email or wallet, and can be associated with multiple allocations.

**2) Allocation**

An allocation is the main way to record entries for tokens owed to stakeholders within Magna. Each allocation contains a few core properties:

* A stakeholder, who is able to login to view the allocation.
* A wallet that will receive the tokens.
  * For Claim-type allocations, the wallet that can claim the tokens.
  * For Direct Transfer-type allocations, the wallet that the tokens will be transferred to.
* A category, used to differentiate the allocation.
  * e.g. "Investor", "Employee", etc.
* A number of tokens, representing the total number of tokens to be received.
* An unlock schedule and corresponding unlock start date.
* (optional) An additional vesting schedule and corresponding vesting start date.

This key information is viewable on your Portfolio page when you login, where you will find one card for each allocation.

<Frame caption="Key information for an allocation.">
  <img src="https://mintcdn.com/magna-bc9e7a48/SeGSLSh_CDKBi4c3/images/stakeholders/portfolio.png?fit=max&auto=format&n=SeGSLSh_CDKBi4c3&q=85&s=29052230c290eadaed8116ac2f3cef06" alt="" width="2260" height="686" data-path="images/stakeholders/portfolio.png" />
</Frame>

Below are some examples of what an "allocation" can represent:

* An employee's token grant, vesting over 4 years.
* An investor token allocation, unlocking over 2 years.
* An airdrop allocation for a community member, claimable immediately at launch.

**3) Allocation Type: "Claim" or "Direct Transfer**

Allocations in Magna are set up as one of two types:

1. "Claim" - Tokens are deposited into an on-chain escrow contract and can be claimed as they unlock.
2. "Direct Transfer" - Tokens will be transferred by the admin directly to the recipient wallets (no action required by the recipient).

#### 4) Unlock Schedule / Unlocked

The unlock schedule defines when tokens become unlocked.

When tokens are unlocked (if there is not an additional vesting contract that applies):

* For Claim-type allocations, unlocked tokens can be claimed from the on-chain escrow contract.
* For Direct Transfer-type allocations, unlocked tokens are eligible to be transferred to recipient wallets.

**5) Vesting Schedule / Vested / Releasable**

Some projects may wish to apply two independent schedules to an allocation, an Unlock Schedule and a Vesting Schedule. In that case, tokens are not able to be claimed or tranferred until they are both vested *and* unlocked. In Magna, this condition is known as "Releasable".

Tokens are "releasable" when they are both unlocked and vested, at which point they can be:

* For Claim-type allocations, they can be claimed from the on-chain escrow contract.
* For Direct Transfer-type allocations, unlocked tokens are eligible to be transferred to the recipient wallets.

#### 4. Admin (or “project admin”)

An admin within Magna is a user from the token project with permissions to add and edit stakeholders, add and edit allocations, and initiate distribution transactions within the platform to transfer vested tokens to stakeholders.

#### 5. Transaction

A transaction within Magna represents an on-chain transaction that, when signed and executed, carries out an action such as Withdrawing tokens form the escrow contract.