# Interest Rates

Interest rates apply within the USB Stablecoin facility as follows:

* Borrowers are **charged interest** (Stability Fee) on their open positions.
* USB Savers receive interest on the USB tokens they deposit in the USB Savings Pool.

## Interest rate dynamics

The USB Stablecoin facility allows the Platform Admin to periodically adjust the Stability Fee (i.e. interest rate) charged to borrowers so that a balance occurs to economically incentivize borrowers’ and lenders’ participation in the platform.

* When there is **high borrower demand**, the interest rate they are charged will be periodically **manually increased**. This will attract **more USB savers** – who will receive a share of the greater interest charges collected from borrowers.
* When there is **low borrower demand**, the interest rate they are charged will be periodically **manually decreased**. This will attract **more borrowers** to the USB facility. 

As a result of this dynamic that automatically balances user participation, **there are no deterministic fixed interest rates**. The market determines the interest rates via the Admin adjustments to the Stability Fee. This allows the Fringe USB Stablecoin facility to remain competitive in the crypto economy – since deterministic fixed interest rates would cause the facility to swing into and out of being competitive in relation to other crypto platforms. 

However, it is likely that USB Savers will enjoy higher interest rates for their USB stablecoin assets using the Fringe Finance Platform as compared to using other stablecoins and staking them on other platforms. This is because the Fringe Finance platform will be a predominant lender for many speculative assets that do not have well-established lending markets.

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