Fading (textile) is a subjective term used to describe the lightening of the colour of a jeans fading (pigmented) following exposure to the effects of washing, wearing, light, heat, time, temperature and chemicals.
Pre-shrunk means the denim has been penetrated to make sure that the garment will shrink less than 3% in washing. And that’s just a technical way of saying that washing your jeans should not affect the fit of the garment.
Raw denim (dry) contrary to washed denim, is a denim fabric not coated after being dyed during its production. Over time, denim will extensively fade, which is often considered desirable.
Textile Dye diagram with links to all related terms in the Eco-Fashion Encyclopedia