Carolina Cloud pays interest on an organization’s prepaid credits using the SOFR (Secured Overnight Financing Rate) benchmark, compounded daily. The interest is added to the prepaid balance, making it fully spendable on compute and storage, and never reduces the balance even if SOFR goes negative (interest simply stops at zero). Idle credits therefore grow over time like a bank deposit.

Interest is calculated following standard market conventions: daily accrual on an ACT/360 basis, with each day’s interest = balance × (annual rate ÷ 100) × (1 ÷ 360). SOFR is quoted on a 360‑day year, so the same divisor is used. Interest is capitalized each day, so the next day’s calculation includes the slightly larger balance. Weekends and holidays accrue using the most recent published SOFR rate, and amounts are rounded to the nearest cent with banker’s rounding to eight decimal places. For example, with SOFR at 4.31% and a $10,000 prepaid balance, the first day’s interest is about $1.20, compounding to roughly $440 over a year (~4.40% APY) if the rate stays steady.

Any organization with a prepaid balance above zero earns this interest automatically—no opt‑in, minimum term, or balance threshold. The earned interest scales with the current balance and appears on the My Organization page under Usage & Billing. Each day’s accrual is recorded both as a durable ledger entry and a tamper‑evident billing audit record, preserving full traceability back to the published SOFR rate that generated it.