what is a floor on a libor rate 
a floor rate is often established in conjunction with a variable rate like libor or sofr for example imagine a loan assessed at a rate of 1 month libor 1 50 with an interest rate ceiling of 4 and floor of 2 if 1 month libor falls to 0 25 the calculated rate would be 1 75 however this rate falls below the floor this loan would not be assessed at 1 75 instead the floor would be triggered and the rate used is 2 if 1 month libor rises to 3 the calculated rate would be 4 50 however this rate falls above the ceiling this loan would not be assessed at 4 50 instead the ceiling would be triggered and the rate used is 4 last if 1 month libor stabilizes at 1 the calculated rate would be 2 5 because 2 5 falls between the ceiling and the floor neither boundary is triggered the interest rate used for this period is 2 5 