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:
Pre-Kink
Post-Kink
Pre-Kink
The pre-kink utilization range increases interest linearly with increases to utilization rate.
Post-Kink
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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