> For the complete documentation index, see [llms.txt](https://tectonic.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://tectonic.gitbook.io/docs/protocol/interest-rate-models/jump-kink-model.md).

# Jump (Kink) Model

**Jump (Kink) Model** is a formula that is used for markets that have typically higher historical utilization. Resulting interest rate in this model will be significantly higher than that of under the Standard Model regime to encourage heavier supply and discourage further borrowing. 

> ***Borrow Rate**: Base Rate + \[Multiplier x min(Kink, Utilization)] + \[Jump Multiplier x max(0, Utilization - Kink)* 
>
> ***Supply rate**: Borrow Rate x Utilization Rate x (1 - Reserve Factor)*
>
> where 
>
> **Kink** = The cut-off point in utilization rate where interest rate follows the Jump Model (e.g., 80%) 
>
> **Jump Multiplier** = Scale factor per utilization under Jump Model
>
> **Base Rate, Utilization Rate and Multiplier** = same as above


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://tectonic.gitbook.io/docs/protocol/interest-rate-models/jump-kink-model.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.