# Utilization Rate

<mark style="color:red;">In borrowing 'utilization rate' is calculated differently from perps.</mark>

Utilization Rate = Borrowed Amount / Supplied Amount

Example Scenario:  Liquidity provders deposited 100,000 ETH into ETH pool. Borrowers (direct borrowing or margin trading borrowing) borrowed 10,000 ETH, the utilization is 10%.