> ## Documentation Index > Fetch the complete documentation index at: https://docs.roxom.com/llms.txt > Use this file to discover all available pages before exploring further. # Repayment and interest > How interest accrues, how to repay (early or partial), how to manage collateral, and what fees apply. ## TL;DR Interest is **simple** and accrues **daily on the original borrowed amount (principal only)** at a rate of **\~0.0199% per day** (7.25% APR ÷ 365). The base for the calculation **never changes**: accrued interest is **not** added to the principal, so the daily interest charge stays the same as your total debt grows. The first accrual runs **24 hours after loan creation**, so **opening and fully repaying within the same 24-hour window incurs no interest**. There are **no mandatory periodic payments**. Repay **partially or in full at any time, with no penalty**. Partial repayments apply to accrued interest first, then principal. Collateral is released **only after full repayment**. You can also **top up** collateral to lower your LTV or **reduce** collateral as long as the resulting LTV stays at or below 50%. ## Quick facts | Item | Value | | --------------------------------------- | ------------------------------------------------------------------------ | | APR | 7.25% (variable) | | Interest model | Simple (no compounding) | | Interest base | Original borrowed amount (principal only) | | Daily interest rate | 0.0199% (7.25% ÷ 365) | | Accrual schedule | Every 24 hours from loan creation | | Same-day repayment | No interest charged if fully repaid within 24h of opening | | Mandatory periodic payments | None | | Early repayment | Allowed, no penalty | | Partial repayment | Allowed, no penalty | | Order of application | Accrued interest, then principal | | Collateral release on partial repayment | No (collateral stays locked until full repayment) | | Top-up | Add BTC at any time to lower LTV | | Reduce collateral | Allowed if resulting LTV ≤ 50% | | Origination fee | None | | Liquidation fee | 2% of the BTC effectively liquidated, deducted from liquidation proceeds | ## How does interest work? * Interest is **simple**: it accrues **daily on the original borrowed amount** (principal only). Previously accrued interest is **not** added to the calculation base. * This means the daily interest charge is **constant** for the life of the loan: even as your total debt grows, each 24-hour accrual is the same amount, calculated as `principal × (0.0725 / 365)`. * The daily rate is `0.0725 / 365 ≈ 0.0199%`. * Each accrual runs **exactly 24 hours after the previous one**, starting from the loan creation timestamp (not at midnight UTC). * **Same-day repayment is free of interest.** If you open a loan and fully repay it before the first 24-hour accrual runs, no interest is charged. The interest accrues per 24-hour cycle, not per calendar day, so it is only added once a full cycle has elapsed. * There are **no mandatory periodic payments**. * Interest is **settled at repayment**, together with principal. * The APR is **variable** and Roxom may change it at any time. Rate changes apply to **future accruals only**, including on active loans, already-accrued interest is not re-priced. See [Variable APR policy](/help-center/loans/rates-and-terms#variable-apr-policy). ## Debt projection example For a USDT 20,000 loan at 7.25% APR (simple interest on the original USDT 20,000 principal) with no repayments: | Period | Total debt | | --------------------- | ----------------- | | Day 1 interest | \~USDT 3.97 | | Month 1 (30 days) | \~USDT 20,119 | | Month 6 (182 days) | \~USDT 20,723 | | **Year 1 (365 days)** | **\~USDT 21,450** | Because interest is **simple**, each day adds the same \~USDT 3.97 to the debt for the life of the loan, accrued interest does not generate more interest. If the BTC price stays flat, the LTV still rises slowly day by day because of accrued interest, even without market movement. ## Can I repay early? Yes. You can repay **at any time, partially or in full, with no penalty**. * A partial repayment is applied to **accrued interest first**, then principal. * A partial repayment does **not release proportional collateral**. Collateral stays locked until the loan is fully repaid. * You can always **adjust your collateral** as long as the LTV thresholds are respected. See the section below. ## How do I repay? The debt is denominated in **USDT** and must be repaid in USDT held in **your Roxom funding account**. The loan is open-ended, so there is no due date, but when you decide to repay, the USDT has to be in Roxom. If you do not have enough USDT to cover what you want to repay, you can: * **Deposit USDT** into your Roxom funding account (from an external wallet or another exchange). * **Sell other assets** on Roxom (for example, sell some BTC that you hold outside your collateral) to obtain USDT, then repay. * **Move USDT in from your trading account** if you hold it there. The Repay modal shows the USDT **Available** in your funding account next to the amount field. If the amount you enter exceeds what is available, top up first. ### Can I repay with BTC? **No.** Repayment is only in USDT. If you want to repay using BTC, the flow is: **sell BTC for USDT on Roxom, then use that USDT to repay**. You can use either BTC that sits outside your collateral, or you can free collateral first via **Adjust → Decrease Collateral** (as long as the resulting LTV stays at or below 50%) and then sell it. On **full repayment**, the credit line closes and the locked BTC is released back to your **funding account** immediately. There is **no cooldown** before opening a new credit line, only **one credit line per user** can be active at a time. ## Manage collateral You can adjust the BTC backing your loan at any time: * **Top-up.** Add BTC to your existing loan to lower the LTV. This is the main preventive action against a margin call: you increase the collateral without paying down debt. * **Reduce collateral.** Withdraw part of your BTC collateral, as long as the **resulting LTV stays at or below 50%**. The system validates the post-reduction LTV before unfreezing the BTC. For LTV thresholds and the margin call mechanics, see [LTV, margin calls, and liquidation](/help-center/loans/ltv-margin-calls-and-liquidation). ## Are there additional fees? | Fee | Amount | | ------------------ | ------------------------------------------------------------------------------------------ | | Origination fee | None | | Prepayment penalty | None | | Liquidation fee | 2% of the BTC effectively liquidated (partial or full), deducted from liquidation proceeds | This content is for informational purposes only and does not constitute investment advice. Trading digital assets involves significant risk, including the potential loss of your entire investment. Please review our [Risk Notice](/legal/risk-notice) before trading.