> For the complete documentation index, see [llms.txt](https://ark-defai.gitbook.io/ark/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ark-defai.gitbook.io/ark/4.-layer-1-or-economic-laws-of-ark-defai/4.4-ark-loan-module-or-ark-lending-collateralized-lending-system/ii.-lending-logic-overview.md).

# 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