How Interest Works
Interest is calculated proportionally to usage time. The earlier you repay, the less you pay.
Simple Example
You borrowed 100 TON for 14 days at 60% annual rate.
If you repay after 14 days:
Interest = 100 TON x 60% x 14/365 = 2.30 TON
Total repayment: 102.30 TON
If you repay after 5 days:
Interest = 100 TON x 60% x 5/365 = 0.82 TON
Total repayment: 100.82 TON
Savings: 1.48 TON
You only pay for the days you actually used the loan.
Minimum Charge Period
The minimum is 1 day. Even if you repay the loan within an hour, interest is calculated for at least one full day.
Interest Distribution
| Who | Receives |
|---|---|
| Lender | 90% of interest |
| Protocol | 10% of interest (service fee) |
Distribution happens automatically upon repayment. The lender doesn't need to request anything.
What Is BPS
Interest rates are specified in basis points (BPS):
| BPS | Percentage |
|---|---|
| 1000 | 10% annual |
| 4000 | 40% annual |
| 6000 | 60% annual |
| 8000 | 80% annual |
Detailed numerical examples in Calculation Examples.