Lending Pools

Lenders can deposit and earn fees. From deposit date, Lenders are entitled to the interest accrued from ongoing loans on a pro-rata basis. However, earnings are only distributed among Lenders every time a loan is repaid or recovered.

LP	Exposure	Rules	Earnings
ETH	See Supported Collections	See Pool Management	100% of all Interest Payments and Penalty Fees 100% of all liquidation proceeds (excluding protocol fees if applicable)

In order to reward our Genesis Lenders, Zharta decided to temporarily reduce the Protocol Fees from 25% to 0%.

Available Liquidity

$$AvailableLiquidity=(1-Utilization Rate)*(1-Reserve)*TotalDeposits$$

The current Reserve Parameter (Stability Controls for more information) is the following:

Lending Pool	Reserve factor
ETH	10%

Lenders may not be able to withdraw the entirety of their deposited funds due to liquidity constraints and/or incurred losses. To avoid this situation, Zharta mitigates risk and reduces potential shortfalls by using a data-driven approach to Risk Management (see Risk for more information).

Lock Period

A 7-day Lock Period is applicable for deposits into Lending Pools (go to Stability Controls for more information). Each new deposit can’t be withdrawn before the lock period is over. If the Lender already has an ongoing lock period, a new deposit won’t extend it.