> For the complete documentation index, see [llms.txt](https://advisorhub.syntheticfi.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://advisorhub.syntheticfi.com/product-learn-more/how-cheap.md).

# How cheap?

Why the rate is lower than almost anything else your client can borrow.

{% hint style="info" %}

## Priced by an open market, not by a bank

SyntheticFi is often 2 to 4 percentage points\* cheaper than an SBLOC or margin loan because the loan is priced by competing lenders on the open market instead of by a bank. Add in the tax deductibility, and the after-tax cost is even lower.
{% endhint %}

**SyntheticFi is often one of the cheapest ways a client can borrow against their portfolio\***. Instead of paying a rate a bank sets, the loan goes onto an open market where large institutions like options market makers, hedge funds, and the BOXX ETF compete to fund it. That competition drives the rate down to near-Treasury levels, with no bank markup.

### A few things to know

* **The rate tracks the market.** The floating-rate option moves with short-term benchmark rates. Fixed-rate options lock in for the term you choose (1 month to 5 years) and track same-duration Treasury yields.
* **Rates update automatically.** SyntheticFi maintains a live rates table that reflects current market conditions, so your client always sees what they'd pay today. The rates shown are indicative worst-case rates, SyntheticFi can often place loans at better rates. [See the current rates →](/product-deep-dive/rates-and-fees.md)
* **Your firm's pricing may include discounts.** SyntheticFi uses volume-based and advisor-based pricing. Ask your SyntheticFi contact for your firm's specific pricing.
* **The after-tax cost is even lower.** Because the interest is tax-deductible, the effective cost often lands well below an SBLOC or margin loan.

***

[\* Important Disclosures](/disclosures.md)


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