> For the complete documentation index, see [llms.txt](https://docs.lore.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lore.finance/lore-cdp/low-interest-borrowing.md).

# Low-Interest Borrowing

For interest bearing collaterals, Lore charges a 2% APR management fee on top of its 0.5% minting fee. This includes wstETH, pufETH, STONE, and weETH.

**There is no fee for paying back a loan.**

Loan Example with Interest-Bearing Collateral:

* If a user deposits sufficient collateral, they can take out a 100 loreUSD loan.
* Their total debt will appear as 105.5 loreUSD, which is made up of a 0.5% issuance fee (in this case 0.5 loreUSD), 5 loreUSD held as a liquidation deposit, and 100 loreUSD minted to the user’s wallet.
* The user's total underlying collateral amount will be reduced by 0.0054% per day, or 2% per year.
* When the user pays back 100.5 loreUSD, the 5 loreUSD liquidation deposit will automatically be paid into their position and the position will be closed. Users will not be charged any additional management fees at this time.

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If you have questions, please reach out to the Lore team in our official [Discord](https://discord.com/invite/Fe7Svu5rg3).
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