> For the complete documentation index, see [llms.txt](https://arcticai.gitbook.io/arctic-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://arcticai.gitbook.io/arctic-protocol/how-arctic-protocol-works.md). # How Arctic protocol works While ideas abound, resources to execute remain limited. Arctic Protocol emerges as a web3 lending solution fueled by AI, crafted to empower new Ideas. This straightforward yet potent web3 protocol is engineered to seamlessly support multiple blockchain networks. Arctic protocol loans Liquidity to contract deployers, but maintains hold of the LP tokens after launch. An upfront interest is charged before the loan is disbursed. A variable interest between 5% \~ 10% per month is charged on loans. The repayment of loans is guaranteed by retaining the LP tokens in a smart contract. Users can request complete or partial loans, if the LP is completely provided by Arctic, 100% of minted tokens are sent directly to the LP. If the user makes some contribution a proportion reflective of that amount is sent to their address. The loan can be repaid to gain control of the LP tokens or duration extended by paying the associated fees. The LP position will be liquidated when the loan duration expires. Users have the option to stake assets in the Arctic liquidity pool, unlocking a potential yield of up to 14.5% APY. The funds are securely held within a smart contract that undergoes regular audits conducted by top-tier security firms. ## Artificial Intelligence Our artificial intelligence assesses projects, establishes the duration of liquidity pool locks, and determines the amount of loanable funds. Additionally, we have undisclosed AI-powered features that will distinguish us from the competition and establish us as a leading force in the space. We believe the future of finance is autonomous protocols governed by AI and secured by smart contracts. ## Why Arctic Protocol? * AI assisted - future proof, built with predictive AI * Rapid Deployment - In a fast-moving crypto landscape, where timing is crucial, Arctic offers an effortless, no-code solution for the swift deployment of tokens, enabling users to quickly capitalize on market opportunities * Customisable token configuration - We are building a robust interface to enable a broad variety of configurable options for tokens launched via the system. * Complete or partial loans - Arctic protocol provides flexible loan options. Maybe you already have some funds but just need a little more to make up the expected market cap. Arctic protocol has got you covered. * Efficient Gas fees --- # 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://arcticai.gitbook.io/arctic-protocol/how-arctic-protocol-works.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.