# II. Lending Logic Overview

Lending Formula (Loan Capacity)

```
Borrowable amount = Collateralized ARK quantity × Backing Price
```

* Backing Price = ARK Treasury (ATS) total assets ÷ ARK total supply
* Users can calculate maximum borrowable funds (USDT or other stable assets) based solely on this value
* Ensures all loaned funds are backed by actual treasury value support