> For the complete documentation index, see [llms.txt](https://docs.clearpool.finance/clearpool/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.clearpool.finance/clearpool/how-it-works/prime/protocol/interest-rate-mechanism.md).

# Interest Rate Mechanism

Interest rates are fixed and agreed when the pool is deployed. Since loaned assets are not held in protocol custody, interest for both (lender and borrower) participants begins to accrue as soon as the assets are loaned.