# Borrowing Fees

Crypto lending services earn money by letting others borrow your tokens. Your assets are combined with those from other users to form a shared pool, and you earn interest based on how much of that pool is being borrowed and the rates borrowers pay.

**How it works:**

* Your USDT joins a shared lending pool with other depositors
* Borrowers must put up valuable collateral (like $15,000 in Bitcoin to borrow $10,000 USDT)
* This is called "overcollateralized borrowing" - they deposit more than they borrow
* Your returns depend on:
  * **Pool utilization:** How much of the pool is currently borrowed
  * **Credit spread:** The difference between what borrowers pay and what the protocol costs

**Example:** If a lending pool has $5 million deposited but only $0.5 million is borrowed at 10% interest, the returns to depositors would be very low because most of the pool isn't earning interest. However, if $4 million is borrowed at 10%, depositors earn much higher returns.

**Safety mechanism:** If borrowers fail to repay, their collateral is automatically sold to cover the debt, protecting your funds.

**Through FIVA:** You can invest in USDT on EVAA Lending Protocol. Your funds cannot be used as collateral when deposited through FIVA - they're purely for earning interest.


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