> 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. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.definer.org/faqs/loan-apr-range.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.