> For the complete documentation index, see [llms.txt](https://v1risk.infinity.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://v1risk.infinity.exchange/liquidity-risk/introduction.md). # Introduction Infinity's lending protocol is built on the assumption that there is an almost infinite amount of proceeds (tokens) available to both lend, or borrow, and that each participant is motivated to go into or out of the system at some level of interest rates. This model, where each participant has their own preferences, creates the interest rate market so that at every point, no matter what interest rates are there is someone looking to lend or borrow. In reality, however, this may not always be the case. This 'unlimited' supply and demand for tokens may not be integrated with or aware of Infinity, or specifically, may not have limit orders in place with Infinity. As such, while there may be unlimited proceeds globally, there may also indeed be zero proceeds locally, within Infinity, to either lend or borrow. To mitigate against this risk, we have enlisted the support of Liquidity Providers. These participants will lend or borrow on-demand, effectively making markets in exchange for a share of the protocol's fees. ### Looking Ahead The broader interest rate markets across DeFi are still in their infancy with few options other than to lend or borrow within an 'instantaneous' or on-demand context. There is no concept (yet) of term lending or borrowing, or more broadly, a yield curve. There is also no concept (yet) of seamless credit risk transfer. As we see more lending and borrowing opportunities across different maturities, as well as more participants in the credit markets, we expect participants' sensitivity to each maturity date to increase, thus further enhancing liquidity at each point along the yield curve. We hope to update this section with more statistics as our protocol, and its usage, evolve. --- # 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://v1risk.infinity.exchange/liquidity-risk/introduction.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.