# Interest #### How are interest rates calculated for each trove? Interest rates differ per collateral, and a user's interest rate depends on their collateral makeup. Imagine collateral 1 comprises 25% of a user's trove, and collateral 2 comprises 75%. C1 has an interest rate of 1%, and C2 has an interest rate of 2%. The user's composite interest rate would be: 25% \* 1% + 75% \* 2% = 1.75%. So, their debt would be charged 1.75% per day, until they adjust their trove and their ratios can change. **When is interest applied?** Interest rates are applied once per day autonomously. This means that once one day has passed, the next action in the protocol will apply interest, for everyone. There is also an external function which anyone can call to tick the interest, once a day has passed. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://techdocs.yeti.finance/how-does-yeti-finance-work/interest.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.