Kink IRM with Multiplier

The kink IRM with multiplier adjusts interest rates consistently with changes in utilization until a critical threshold where interest will increase more rapidly and with a time-based multiplier.

It consists of two utilization ranges:

  1. Pre-Kink

  2. Post-Kink


The pre-kink utilization range increases interest linearly with increases to utilization rate.


The post-kink utilization range increases interest more rapidly with increases to utilization rate.

A time-based multiplier is added that increases interest even without changes to utilization.

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