How is the interest rate calculated?

The interest rate is determined by the loan you choose via the Abra app. This will vary depending on the rate you choose and the length of time you choose to repay the loan.

Example:

A user borrowing 10,000 AbraUSD at a 5% interest rate and must repay within 12 months. In 12 months, this loan will accrue about 41.67 AbraUSD of interest per month.
This is calculated as:
5% interest/year * 10,000 AbraUSD borrow amount * (1 year / 12 months)  = 41.67 AbraUSD
5%/12 X10,000.00 = 41.67 AbraUSD