# Lending One approach to earn interest on tokens without running the risk of temporary loss is to supply assets on the Terrace. It is not, however, without risk. You might momentarily be unable to withdraw your tokens as a lender. This may occur if the loan pool has a high utilization rate (token consumption rate) and insufficient liquidity for the given token. It's possible that lenders won't be able to withdraw all of their tokens at once. The Terrace employs a dynamic interest rate model to repeatedly lessen this possibility. Lenders rely on liquidators to pay back liquidatable loans and maintain the protocol's stability. But if it doesn't, a loan can end up being undercollateralized, which would mean a loss for the lenders. Lif3 combines model parameters and incentives to lessen the possibility of undercollateralized loans. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.lif3.com/terrace/risks/lending.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.