The interest rate is set by the same people who publish the price feed so that it can adapt to changing market conditions.
Learn more here:
https://steemit.com/steemit-guides/@pfunk/a-full-steemit-user-s-guide-to-steem-witnesses
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Does this guarantee that I will make this return?
Guaranteed return in steem dollars - whether or not they maintain their value to fiat or btc is another thing.