Interest

Users should note that they will not earn any interest on the collateral they provide. The only interest applicable is the rate users must pay on their open borrowing position, as indicated by the APY. Borrowing includes a utilization rate “kink” meaning that above a certain point, the interest rate increases more rapidly. This interest accumulates every second using the block timestamp and adds to the total debt, which must be fully repaid to close the borrowing position. Users need to monitor their open debt, as the additional interest could make their position subject to liquidation.