> For the complete documentation index, see [llms.txt](https://docs.elemental.fund/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.elemental.fund/elemental-lend/protocol-architecture/deposits-withdrawals-and-yield-accrual.md). # Deposits, Withdrawals, and Yield Accrual #### Deposits and Withdrawals Elemental Lend supports instant deposits and withdrawals, giving depositors uninterrupted access to their capital. When you deposit, funds are immediately routed to the highest-yielding opportunity available across our integrated pools. Yield generation begins the moment your liquidity is deployed. Withdrawals follow the same principle: they settle instantly as long as sufficient unutilized liquidity is available. This design gives users the flexibility of a money-market protocol with the yield optimization of an actively managed lending router. #### **Yield Accrual and Balance Updates** Yield accrues continuously from the underlying lending venues, but your on-chain balance updates only when a triggering event occurs. These “crank events” include: * A new deposit * A withdrawal * Reallocation of capital between integrated pools * A claim of accrued yield Each event prompts a refresh of user balances and distributes accumulated yield proportionally. This approach ensures accurate accounting while reducing gas expenditure thereby improving capital efficiency. The result is a system where your yield is always accruing, even if visible updates appear intermittently. #### **Utilization Rate and Liquidity Availability** As with any lending protocol, withdrawals depend on the utilization rate of the pool. You can withdraw up to the portion of liquidity not currently lent out. When utilization is high, available liquidity may temporarily be insufficient to satisfy large withdrawals. In these moments: * Higher utilization leads to higher yields, incentivizing liquidity providers to remain in the pool or add new capital. * Borrowing becomes more expensive, discouraging additional borrowing and encouraging existing borrowers to repay. These opposing incentives create a natural stabilizing effect, helping the pool cycle back towards healthier liquidity levels. However, it is important to recognize that extreme conditions, such as market stress or simultaneous large withdrawal attempts, may still result in temporary illiquidity. In such cases, withdrawals will succeed once borrowers repay or new liquidity enters the pool. This behavior is typical of all lending markets, and is an inherent characteristic of pooled credit systems. --- # 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.elemental.fund/elemental-lend/protocol-architecture/deposits-withdrawals-and-yield-accrual.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.