# Interests Interest is the reward paid for providing liquidity in a SRWA Lending Protocol, or the amount that is paid when taking out the loan. much like traditional interest earned on a bank deposit or loan. With every protocol interaction, interests are calculated so the user and the platform states can be updated accordingly. There are three types of interests that are being calculated: Borrow interest: borrow\_interest = total\_pool\_borrow \* borrow\_apr Deposit interest: deposit\_interest = borrow\_interest - reserve\_interest Reserve interest reserve\_interest = borrow\_interest \* reserve\_factor User states will be updated on every interaction with the protocol, for the deposit and withdraw actions, SD Token balance will be updated with the accrued interest, for the borrow and repay actions, SB Token balance will be updated with the accrued interest. --- # Agent Instructions: 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: ``` GET https://srwa.gitbook.io/srwa-docs/core-calculations/interests.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.