# Borrow Interest Rates, Fees and Vault Tiers
To normalize borrowing demand, JPEG'd uses a tiered vault structure (e.g. Tier-A, Tier-B, Tier-C) where each tier has different debt ceilings and annual interest rates.
Contrary to pool-based lending, interest rates are fixed and set by the DAO Governance. They are voted on every month to adapt to potentially changing market conditions. Historically they have stayed very stable and attractive.
The team manages debt ceiling according to demand and the peg of PUSd and pETH.
You can view all collections's vault on the [dApp](https://jpegd.io/vaults).
#### **Do all NFT collections have the same tier vault structure?**
No. The amount of available vaults, their interest rates, and their debt ceilings are all decided via [governance ](https://snapshot.org/#/jpeg%E2%80%99d.eth)according to the borrowing demand for each respective NFT collection.
#### **An example of the vault tier structure is provided below:**
| Borrow Asset | Tier-A Interest Rate | Tier-B Interest Rate | |
|---|
| pETH | 5% | 10% | |
| PUSd | 2% | 5% | |
## FAQ
#### How does my position get placed into a certain vault tier?
Depending on the available debt in each vault, borrowing positions will get automatically placed in the best vault (i.e. lowest interest).
For existing positions, if a user wants to borrow more on a current borrow AND the borrowed amount exceeds the available pETH/PUSd debt (debt ceiling) in the current given vault tier, the position will automatically be migrated to the next tier vault. Any vault migration is indicated in the UI when trying to borrow more on existing positions.
**Can I migrate a position to another vault tier?**
Yes, it’s possible to migrate a position to another vault tier as long as the available debt is equal to or more than your current position’s debt. This can be done by using the migrate function.
**Who receives the interest rates charged on loans?**
All earnings from interest charged is directed to the treasury multi-sig.
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