> For the complete documentation index, see [llms.txt](https://justlend.gitbook.io/untitled/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://justlend.gitbook.io/untitled/risk/liquidity-risk/borrow-interest-rate.md).

# Borrow Interest Rate

The borrowing interest rate is determined by the utilization rate and the corresponding money market. Now, the borrowing interest rate is calculated according to two models, namely smoothing interest rate model and staged interest rate model. Smoothing interest rate model is as follows: 

Interest rate set by the staged interest rate model is as follows: 

When the utilization rate <= kink:&#x20;

When the utilization rate > kink:

&#x20;Where &#x20;