Interest and repayment

Fixed, prorated interest

Fuel Credit targets a fixed 10% APY, prorated by the selected duration.

Term	Approximate interest at 10% APY
6 months	4.93% of principal
9 months	7.40% of principal
12 months	9.86% of principal

The exact amount depends on the configured term duration and the verified FUEL/USD price used when the loan opens.

Upfront FUEL fee

The target design converts the USDC-denominated interest into FUEL using the verified opening price. The fee is separate from collateral so the interface can state clearly:

• how much FUEL is locked;
• how much FUEL is charged as interest;
• how much USDC is received.

Maturity

Maturity is the repayment deadline. There is no additional grace period in the current product design.

Partial repayments

Partial principal repayment returns collateral pro rata. For example, repaying 25% of principal returns approximately 25% of the remaining locked collateral.

Implementation status

The MVP Sway contract still requires FC-029 before upfront-FUEL fee accounting is production-ready.