MTG Keyword Rules — Comprehensive Rules Glossary

Craft represents an activated ability. It is written as “Craft with [materials] [cost],” where [materials] is a description of one or more objects. It means “[Cost], Exile this permanent, Exile [materials] from among permanents you control and/or cards in your graveyard: Return this card to the battlefield transformed under its owner’s control. Activate only as a sorcery.”

If an object in the [materials] of a craft ability is described using only a card type or subtype without the word “card,” it refers to either a permanent on the battlefield that is that type or subtype or a card in a graveyard that is that type or subtype. This is an exception to rule 109.2.

An ability of a permanent may refer to the exiled cards used to craft it. This refers to cards in exile that were exiled to pay the activation cost of the craft ability that put this permanent onto the battlefield.