# Interest rate model of Root Finance Liquidity risk becomes a pressing issue as the utilization rate escalates, particularly as it approaches the upper limit of 100%. To customize the model for this particularity, the interest rate curve is segmented into two phases centered around an optimal utilization rate, Uoptimal . Prior to reaching Uoptimal the curve’s ascent is gradual; however, beyond this point, it increases significantly. $$if U <= Uoptimal: Bt = (Ut/ Uoptimal) Rslope1$$ $$if U > Bt = Rslope1 + (Ut −Uoptimal) /(1−Uoptimal) Rslope2$$ **DEPOSIT RATE** $$Dt = Ut ∗ Rt ∗ (1 − Rf )$$ **Legend:** Utilization = U Optimal Utilization = Uoptimal Rate Slope 1 = Rslope1 Rate Slope 2 = Rslope2 Borrow Rate= Bt Deposit Rate = Dt Utilisation Rate = Ut Borrow Rate = Bt Reserve Factor = Rf --- # 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://docs.rootfinance.xyz/tecnical-guide/interest-rate-model-of-root-finance.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.