> For the complete documentation index, see [llms.txt](https://docs.gage.cash/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gage.cash/borrow/cap-and-fixed-cost.md). # The cap and the fixed cost Three numbers define the money side of a deal. Two are yours to set; the third follows. | Number | Set by | Meaning | | ---------------- | -------------------------------- | --------------------------------------------------------------------- | | **Cap** | Borrower | What you pay to reclaim. The lender's maximum outcome in USDG. | | **Fixed cost** | Borrower, guided by recent deals | What the lender earns if you reclaim. The cap minus the asking price. | | **Asking price** | Follows | What the lender pays to fund the deal. Cap ÷ (1 + cost). | ## Worked example 12.5 NVDA worth 2,280.00 USDG. The borrower sets a cap of 1,824.00 USDG (80% of value) and a fixed cost of 0.50% for 7 days. | | | | -------------- | ----------------------------------- | | Asking price | 1,814.88 USDG | | Fixed cost | 9.12 USDG · 0.50% for 7 days | | You receive | 1,814.88 USDG less the protocol fee | | Pay to reclaim | 1,824.00 USDG | | Still at stake | 12.5 NVDA | If the borrower reclaims, the lender is paid 1,824.00: their 1,814.88 back plus 9.12. If the borrower walks away, the lender holds 12.5 NVDA bought at 145.92 each, 20% under the price when the deal was listed. ## Why amount and percent, together, for the term The cost is fixed for the term. It is not interest and it does not compound. So the honest figure is the amount in USDG and the percent of the price, for the term. gage never shows a bare percentage or an annualised rate on its own. Where an APR figure appears, its breakdown is one tap away and the amount and percent for the term stay next to it. See [The APR figure](/lend/apr.md). ## Choosing the cap A higher cap means more USDG now and a larger payment to reclaim. A lower cap means the lender is buying deeper under the current price, which usually lets you name a lower fixed cost. The suggestion is 90% of value for stocks and positions and 70% for memes. The cap is yours; the app only suggests. ## Choosing the fixed cost The app shows an indicative cost from recently funded deals on the same asset and term. Name a higher cost and the listing funds faster. Name a lower one and it may wait. The listing has no time limit; it stays open until funded or cancelled. ## Early reclaim You can reclaim at the full cap any time from funding, not only at expiry. The lender is paid the same amount sooner. Rewards keep dripping on their original schedule. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://docs.gage.cash/borrow/cap-and-fixed-cost.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.