Powersets of terms and composite monads

Composing various powerset functors with the term monad gives rise to the concept of generalized terms. This in turn provides a technique for handling many-valued sets of terms in a framework of variable substitutions, thus being the prerequisite for categorical unification in many-valued logic programming using an extended notion of terms. As constructions of monads involve complicated calculations with natural transformations, proofs are supported by a graphical approach that provides a useful tool for handling various conditions, such as those well known for distributive laws.