Loan terms & pool configurations

This page sets out the specific loan offers available in each pool and the current value of other key protocol configurations. Where relevant links are provided to documentation explaining how how these loan terms and configurations work.

Loan terms

A loan term is defined as unique combination of credit score, LTV, loan duration and interest rate. It is only possible to borrow from the protocol by selecting an available loan term. Currently there are 110 unique loan terms in each pool. The loan terms on offer to a borrower are determined by their credit score. Those with good credit scores will benefit from a greater number of loan terms with potentially lower collateral requirements than those with lower credit scores.

• Comparing loan terms offered to borrowers with a credit score 1 vs. score 10

  Borrowers with a credit score of 1 are high reputable and qualify for the largest number of loan terms, including under collateralised loans. For example a borrower with a score 1 could decide to take a 30 day loan in which case they could select from the following combinations of LTV and interest rate. A lower LTV (over collateralised loan) caries little credit risk thus has a lower interest rate. Whereas a high LTV (under collateralised loan) caries higher credit risk and thus has a higher interest rate.

  	85% LTV	90% LTV	…	120%	130% LTV
  30 days	1.5%	1.5%	…	14%	15%

  A borrower with credit score of 10 is not eligible for an under collateralised loan. Thus they would be faced with a smaller selection of loan terms. In this example they have a single option

  	85% LTV
  30 days	2%

  Note that in addition to accessing lower collateral requirements a higher score also allows the borrower to borrow at lower costs. In the example above a credit score 1 can take a loan with 85% LTV and pay 1.5% interest. Whereas a score 10 would pay 2% interest for the same LTV.

• See the following page for list of all loan terms

  These are the current loan offers (combinations of credit score, LTV, duration and interest rate) available in all stablecoin pools.

Loan parameters

The following parameters apply across all pools and loans equally. For instance a grace period of 5 days is applied to all loans regardless of what pool they originate from, the duration of the loan or the credit score of the borrower.

Parameter
Grace period	5 days
Interest penalty multiplier	x2
RateAI treasury fee	10%

Borrowing limits

More detail on specific borrowing limits is set out in the borrowing section (see here). Note that all borrowing limits are set specifically per pool. For instance ‘Max amount borrowed per user’ is currently $1,500 in both the USDC and UDST pool. Thus a user could potentially borrow $3,000 in total ($1,500 from each pool).

Limit	Unit	Limit
Max amount available for borrowing from a pool	$*	50,000
Minimum loan size	$*	1
Max number of loans per user, per pool	# loans	2
Max amount borrowed per user : Scores 1 to 10	$*	See

*Note that $ indicates the value is set in the stablecoin amount of that pool. e.g. a minimum loan size of $1 in the USDT pool is set as 1 USDT.