# Rate Calculation

The interest rate curve defines the interest rate for different utilization rates. The curve parameters are set by governance and can be changed over time. Typical curve parameters will involve a base rate, a primary slope, a kink, and a post-kink slope.



<figure><img src="https://2724300853-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FYj2zqVVPGm5ELnhKtZpz%2Fuploads%2FTHV4k2fNERrxiyNs9mrn%2FScreenshot%202025-03-14%20at%201.52.39%E2%80%AFPM.png?alt=media&#x26;token=9197a1d3-f959-4a22-b8c1-b44d982b31c6" alt=""><figcaption><p>Sample Interest Rate Curve. x axis = utilization; y axis = interest rate</p></figcaption></figure>
