> For the complete documentation index, see [llms.txt](https://docs.primefi.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.primefi.xyz/product/lend/ptokens.md).

# pTokens

### pTokens: Interest-Bearing Deposit Tokens

**pTokens** (interest-bearing tokens) are minted when users **deposit assets** into the protocol.\
They are the protocol's accounting tokens for supplied positions and accrued interest.

* **Primary function:** record the holder's underlying-denominated claim against a specific reserve.
* **Interest accrual:** PrimeFi stores a scaled balance and applies the reserve's liquidity index. As the index rises, the externally reported pToken balance—and therefore the accounted claim—rises.
* **Example:** supplying USDC mints `pUSDC`. A later withdrawal burns the applicable pUSDC amount and requests USDC from the reserve.
* **Important limitation:** pToken accounting does not guarantee immediate redemption, solvency, or a secondary-market price.

👉 In short: **pTokens represent the creditor (lender) side of the protocol.**

| Topic                       | Detail                                                                                                                                                                                                                                                                          |
| --------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Symbol format**           | `p<ASSET>`, for example `pWETH` or `pUSDC`.                                                                                                                                                                                                                                     |
| **Lifecycle**               | <p>• <strong>Minted</strong> when underlying is supplied.</p><p>• <strong>Burned</strong> when underlying is withdrawn.</p><p>• During liquidation, pTokens may be transferred or burned depending on the liquidation path.</p>                                                 |
| **Accounting denomination** | Protocol accounting expresses pToken balances in units of the underlying asset. This convention does not promise immediate conversion into underlying or guarantee that a pToken trades at the same price as the underlying on external markets.                                |
| **Interest accrual**        | Each reserve has a liquidity index. The contract multiplies the holder's internal scaled balance by the current index when reporting the pToken balance. This is why the displayed balance can grow without a separate interest payment or a changing “price per pToken” claim. |
| **Wallet visibility**       | pTokens are ERC-20 tokens and may appear in compatible wallets; the contract address may need to be added manually. Transfers can be subject to protocol validation when the tokens are used as collateral.                                                                     |
| **Withdrawing underlying**  | Navigate to **Dashboard → Deposits → Withdraw** to request the underlying. Execution depends on available reserve liquidity, reserve solvency, pause state, the user's collateral and Health Factor, and all other contract validations at transaction time.                    |