# Pool status

Each pool is characterized by a utilization status, based on the utilization rate:

<table><thead><tr><th width="162">Utilization rate</th><th width="150">Pool Status</th><th>Time Limit</th></tr></thead><tbody><tr><td>&#x3C;95%</td><td>Active</td><td>ꝏ</td></tr><tr><td>>95%</td><td>Warning</td><td>Until utilization = 99% or &#x3C;95%</td></tr><tr><td>99%</td><td>Provisional Default</td><td>120 Hours</td></tr></tbody></table>

Each status corresponds to possible actions by lenders and borrowers:

* ACTIVE: Lenders: can deposit and withdraw; Borrower: can draw liquidity and repay.
* WARNING: Lenders: can deposit and withdraw; Borrower: can only repay. Interest will continue to accrue.
* PROVISIONAL DEFAULT: Lenders: deposit and withdrawals are blocked; Borrower: has 120 hours to deposit and get the utilization rate under 95%

If past 120 hours the borrower has not brought the utilization rate below 95 percent, the pool will go into [Default](/ribbon-lend/introduction-to-ribbon-lend/no-lockups/default.md).

### Utilization curve

<figure><img src="/files/SIcMvV4bN06S5s5aZvMj" alt=""><figcaption></figcaption></figure>

The relationship between interest rates and pool utilization rates follow curves set by the Team, based on prevailing CeFi lending rates to market makers.

* The curve has its lowest interest rate (Ym) at utilization (Xm) in order to achieve optimal utilization and capital efficiency;
* The curve discourages utilization in lower and extreme high ranges;
* The borrow APR steadily decreases with utilization from X0 to Xm. This compensates lenders who maintain funds within the pool with a more favorable interest rate when the borrower utilization rate is below optimal;
* Concurrently the curve increases sharply from Xm to X1, discouraging high utilization. This design reinforces the exit liquidity available for lenders even when utilization is optimal;
* During periods of volatility where liquidity withdrawal rates are higher, utilization/interest rates will peak, incentivising borrowers to reduce utilization in order to avoid higher interest rates. Higher interest rates may also attract new lenders to the pool.


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