# Supply & Withdraw

### How Supplying Works

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When you supply assets to AlphaFi Lend:

1. Your assets are deposited into the liquidity pool.
2. You begin earning interest immediately.
3. Your supplied assets can be used as collateral to borrow other assets.
4. You can withdraw at any time, subject to available liquidity.

Interest accrues continuously based on the current supply APR, which fluctuates with market utilization.

### Supply APR

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The Supply APR represents the annualized return you earn on supplied assets. This rate is determined by:

* **Utilization rate** — Higher borrowing demand increases supply rates.
* **Interest rate model** — Each asset has configured rate parameters.
* **Reserve factor** — A portion of borrow interest goes to protocol reserves.

<details>

<summary><em>Why do supply rates change?</em></summary>

Supply rates are dynamic and respond to market conditions. When more users borrow an asset, utilization increases, pushing rates higher. When borrowing decreases, rates fall. This mechanism balances supply and demand.

</details>

### Incentives

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Some assets offer additional incentive rewards on top of the base supply APR. You can identify incentivized assets by the fire icon next to their APR.

Hover over the APR to see a breakdown of:

* Base supply interest
* Additional incentive rewards

Earned rewards can be claimed via the **"Claim Rewards"** button on your dashboard.

### Using Supplies as Collateral

Supplied assets automatically serve as collateral, enabling you to borrow against them. The amount you can borrow depends on:

* **Loan-to-Value (LTV)** — The maximum percentage you can borrow against each asset.
* **Total collateral value** — The USD value of all your supplied assets.

<details>

<summary><em>LTV Example</em></summary>

If you supply $100 of SUI with an 85% LTV, you can borrow up to $85 worth of other assets.

</details>

### Withdrawing

You can withdraw supplied assets at any time, provided:

1. **Sufficient liquidity exists** — Other users haven't borrowed all available assets.
2. **Your position remains healthy** — Withdrawing won't push your borrow limit past the safe threshold.

If you have active borrows, withdrawing collateral reduces your Safe Borrow Limit. Ensure your position stays in the green zone after withdrawal.

### The Supply Flow

1. Navigate to the asset you want to supply in the markets table.
2. Click "Supply".
3. Enter the amount.
4. Confirm the transaction in your wallet.
5. Your position updates immediately upon confirmation.

Your supplies appear in the "Your Supplies" panel, showing:

* Asset and balance
* Current APR
* Options to Supply more or Withdraw


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