# Loan APR Range

### 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

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.

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