> For the complete documentation index, see [llms.txt](https://srwa.gitbook.io/srwa-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://srwa.gitbook.io/srwa-docs/core-calculations/interests.md). # 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 This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://srwa.gitbook.io/srwa-docs/core-calculations/interests.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.