# Glossary The Glossary section on Investy.ai provides a valuable resource for users to access detailed explanations and meanings of various terms used in the cryptocurrency and trading industry. It offers in-depth information about the significance, context, and applications of specific terms, allowing users to develop a comprehensive understanding of the concepts involved.

Terms	Definitions
AI	Artificial Intelligence - refers to the development of computer systems that can perform tasks that typically require human intelligence. It involves creating algorithms and models that enable machines to learn from data, recognize patterns, make decisions, and perform actions without explicit programming.
ML	Machine Learning - a subset of AI that focuses on developing algorithms and models that enable computers to learn and make predictions or decisions based on data without being explicitly programmed. ML algorithms analyze and interpret data, identify patterns, and improve their performance over time through iterative learning processes.
CEX	Centralized Exchange - CEX is a centralized platform or exchange where users can trade cryptocurrencies. It operates with a central authority that manages and facilitates the exchange of digital assets. CEX platforms typically offer features such as order books, liquidity pools, and user accounts for trading various cryptocurrencies.
DEX	Decentralized Exchange - DEX is a decentralized platform or exchange that operates on a distributed network of computers or blockchains. It enables peer-to-peer trading of cryptocurrencies without the need for intermediaries or a central authority. DEX platforms allow users to maintain control of their funds and execute trades directly with other participants on the network.
DeFi	Decentralized Finance - DeFi refers to a set of financial applications and platforms built on decentralized networks, such as blockchain. It aims to provide traditional financial services, such as lending, borrowing, trading, and investing, in a decentralized and permissionless manner, without relying on intermediaries like banks. DeFi protocols often utilize smart contracts to automate and secure transactions.
DoS	Denial of Service - a type of cyber attack where the attacker disrupts the normal functioning of a computer system, network, or website by overwhelming it with a flood of illegitimate requests or excessive traffic. The goal of a DoS attack is to make the targeted system or service unavailable to legitimate users, causing inconvenience or financial loss.
CAGR	The compound annual growth rate (CAGR) is the rate of return (RoR) that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each period of the investment’s life span.
Sortino Ratio	Sortino ratio takes an asset or portfolio's return and subtracts the risk-free rate, and then divides that amount by the asset's downside deviation.
Shape Ratio	Sharpe ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk. Volatility is a measure of the price fluctuations of an asset or portfolio.
Max drawdown	The maximum observed loss from a peak to a trough of a portfolio, before a new peak is attained.
PnL	Profit and Loss Statement

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