# Clearing Periods

A Clearing Period occurs at the end of each epoch during a 48-hour period at which certain lending activities, and related transactions, are processed

### 🧤 Lending & Withdrawal Request Processing <a href="#lending-and-wtihdrawal-request-processing" id="lending-and-wtihdrawal-request-processing"></a>

All queued Lending and Withdrawal requests are processed during the final 48 hours of each epoch, based on Lender Loyalty Levels. Recall that loan Tranche allocations may be adjusted to accommodate submitted requests if a Lending Strategy is oversubscribed.

### 💵 Interest Accrual <a href="#interest-accrual" id="interest-accrual"></a>

Interest is accrued every epoch (7 days) and is reflected in your loan balance(s) at the start of each new epoch.&#x20;

### 📊 Loan Balance Updates <a href="#loan-balance-updates" id="loan-balance-updates"></a>

After clearing, at the start of each new epoch, your loan balance(s) is updated to reflect increases (associated with Accepted Lending Requests and/or interest earned) or decreases (associate with Accepted Withdrawal Requests and/or losses).&#x20;

### 🧮 Loyalty Level Recalculation <a href="#loyalty-level-recalculation" id="loyalty-level-recalculation"></a>

Lender Loyalty Levels are recalculated based on current $KASU holdings and lending activity, thereby concluding clearing.<br>


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