# Interest Rates

On Clearpool, interest rates are driven by the market forces of supply and demand. Pool interest rates are dynamic, they follow a curve and fluctuate depending on the proportion of pool liquidity being utilized by the borrower at any given time – the utilization rate.

Pool interest is accrued on every block and automatically added to the balance of liquidity owed by the borrower. All else equal, this increases the borrower’s utilization rate.

The amount and frequency of each repayment is of the borrower’s choosing, so long as the utilization rate stays below a predetermined level set by governance (see [Default](/clearpool/how-it-works/dynamic/protocol/default.md) for more information).

Clearpool has introduced the [CPOOL staking](/clearpool/how-it-works/cpool-staking.md) system, whereby a number of contributors (aka Oracles) are tasked with providing the parameters that shape the interest rate curve.

For more technical detail on interest rates, please see the IRM Technical Papers below.

{% file src="/files/AbUyEWUi0yBaDrCyIcQS" %}
New IR Model Launched June 2022 (plus other models evaluated)
{% endfile %}

{% file src="/files/Dmr64Ah0iNc6InFISBsr" %}
Original IR Model & Other Formulas
{% endfile %}


---

# 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/dynamic/protocol/interest-rates.md?ask=<question>
```

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.