> For the complete documentation index, see [llms.txt](https://docs.definer.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.definer.org/faqs/loan-apr-range.md).

# Loan APR Range

![](https://lh5.googleusercontent.com/6QLbgHGhnMbu7rjbhYhEoBIJpk695Umwf4sY9V-wYhVrmL7zVtfMuOeq_6c9WJmkr4EF5Kk8rH6VF-5bfJqTA5FHpb-HfurHLkRDqn4rOaEptuFYkbRRJKbCQw44o6y_G_BQf04wN9O9qg_Q-Q)

### What is Loan APR Range? 

The loan APR range is for creators to choose the annual percentage return rate range for deposits and loans. The curve is a piecewise function curve. The minimum APR a creator can choose is 3% and the maximum is 300%

* Deposit APR (Annual Percentage Rate) is the annual rate of return earned on a deposit, without taking into account the effect of compounding interest. 
* Borrow APR (Annual Percentage Rate) is the annual rate of interest paid on borrow funds, without taking into account the effect of compounding interest.

### How is the APR calculated? 

The loan APR range can be adjusted by two parameters: *RateCurveConstant and maximum utilization rate*. 

* Borrow APR = RateCurveConstant÷(1−u), when utilization rate is larger than maximum utilization rate(umax)
* Borrow APR = RateCurveConstant÷(1−umax), learn more details here: [https://docs.definer.org/interest-model ](https://docs.definer.org/v/copy-of-definer.org/interest-model#borrow-rate-model)
* Deposit APR= Borrow APR \* Utilization

### Definition

**Loan APR Range:** The Loan APR Range allows HODLer Market creators to choose the APR rate for deposits and loans of the base token.