# Interest rate

### Utilization ratio

$$
Utilization Ratio=(TotalBorrowed/PoolLiquidity)\*100
$$

### Deposit  APR

$$
DepositAPR=BorrowAPR∗(1−reserveFactor)
$$

* Plus pool depositor and Long/Short position depositor will pay 80% of the accumulated interest earnings to a Lender, 20% will be set aside as reserves, and will later be used as a reserve fund for KSP Buyback & Burn.
* reserve Factor = 0.2

### Borrow APR

$$
BorrowAPR=BorrowingRateModel\*Utilization
$$

### Borrowing Rate Model  <a href="#borrowingratemodel" id="borrowingratemodel"></a>

\*Please note the MBX, AZIT interest rate model is different from other tokens.

**KLAY / KSP / WEMIX / BORA / oETH / oUSDT / oUSDC / KDAI / oXRP / oORC / oMESH / oTON**

<figure><img src="https://content.gitbook.com/content/lEjyveZVVY0NXibsLATk/blobs/p7JdTmO78ExzQC0f0XuT/image.png" alt=""><figcaption></figcaption></figure>

| Utilization Ratio | Borrowing Rage Range | Logic                                 |
| ----------------- | -------------------- | ------------------------------------- |
| 0%\~60%           | 0%\~20%              | Borrowing Rate = Utilization / 3      |
| 60%\~90%          | 20%                  | Borrowing Rate = 0.2                  |
| 90%\~100%         | 20%\~100%            | Borrowing Rate = Utilization \* 8 - 7 |

**MBX**

<figure><img src="https://content.gitbook.com/content/lEjyveZVVY0NXibsLATk/blobs/a3ZS10hk2WReFheALoDb/image.png" alt=""><figcaption></figcaption></figure>

<table><thead><tr><th width="173.33333333333331">Utilization Ratio</th><th>Borrowing Rate Range</th><th>Logic</th></tr></thead><tbody><tr><td>0%~60%</td><td>0%~20%</td><td>Borrowing Rate = Utilization / 3 </td></tr><tr><td>60%~90%</td><td>20%</td><td>Borrowing Rate = 0.2 </td></tr><tr><td>90%~100%</td><td>20%~300%</td><td>Borrowing Rate = Utilization * 28 - 25 </td></tr></tbody></table>

**AZIT**

<figure><img src="https://content.gitbook.com/content/lEjyveZVVY0NXibsLATk/blobs/uMOIIVHDF06hYsxcLVKW/image.png" alt=""><figcaption></figcaption></figure>

| Utilization Ration | Borrowing Rate Range | Logic                               |
| ------------------ | -------------------- | ----------------------------------- |
| 0%\~60%            | 0%\~100%             | Borrowing Rate = Utilization\*5/3   |
| 60%\~90%           | 100%                 | Borrowing Rate = 1                  |
| 90%\~100%          | 100%\~500%           | Borrowing Rate = Utilization\*40-35 |