# Zero-Interest Borrowing

For USDC and WETH collaterals, Lore issues interest-free loans denominated in the loreUSD stablecoin. Instead of paying interest, users pay a 0.5% issuance fee, meaning they don’t need to worry about micro-managing their position.

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

loreUSD Loan Example

* 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.
* 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.

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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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