> For the complete documentation index, see [llms.txt](https://docs.vm.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vm.com/guide/loan/platform-rules.md).

# Platform Rules

### **Management Fee**:

* Calculation: Loan Amount \* 0.5% \* Loan Duration (30 days = 1 cycle)
* Example: For a 30-day loan (1 cycle), the fee is calculated as Loan Amount \* 0.5% \* 1. For a 60-day loan (2 cycles), the fee is calculated as Loan Amount \* 0.5% \* 2, and so on.
* The management fee accumulates based on the loan duration.

### **Repayment Methods**:

* **Lump-Sum Payment**: Repay the total principal and interest at the end of the loan term.
* **Interest-Only Payments**: Pay only the interest monthly during the loan term, with the principal due at the end of the term.
* **Equal Monthly Installments**: Pay a fixed amount of principal and interest monthly during the loan term.

### **Annual Interest Rate**:

* Borrowers can set the annual interest rate based on their needs. The interest amount will be automatically calculated accordingly.

### **Guarantee Services**:

* **Fee**: 20% of the total interest amount. If the fee is less than 10 USDC, a minimum fee of 10 USDC will be applied.
* **Deduction Method**: The guarantee fee will be deducted along with the investment amount when the lender funds the loan.