# Repayment and Penalties **Borrower Repayments:** * Borrowers are obligated to make repayments according to the predetermined schedule set for the Credit Vault by the borrower. * However, this obligation only applies if there are withdrawal requests submitted within the minimum notice period. * If no lender requests a withdrawal during the repayment cycle, the borrower does not need to make a payment at that time. **Penalty Interest:** * In case of a borrower missed repayment (failing to repay on the designated Repayment Date), a grace period of 5 days is granted. * During this grace period, a significant penalty interest of 20% will accrue on the total borrowed amount. * This penalty serves as a deterrent for late repayments and compensates the lenders for the increase in the overall risk profile for all lenders in the pool. * The good news for lenders is that the accrued penalty interest is distributed proportionally alongside the regular interest earned. --- # 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://docs.clearpool.finance/clearpool/how-it-works/credit-vaults/protocol/repayment-and-penalties.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.