Topic: BTC lending on Poloniex (Read 1761 times)

You can only get the funds if you have the same amount as colateral on your own account. The funds are frozen until you repay. This not exactly P2P loans as BTCJAM. The risk is a default buy the exchange itself. not individual runners.

Did you read the update? Did you read the topic?

if I don't understand the loaning principle in poloniex then these loans should be under some other category at least, "defaulted" or "expired" etc... I don't think they just disappear even if paid in full or defaulted. Did you contact poloniex support and asked about the situation?

So what was the error anyway ?

It's kind of weird to me the people saying if you lend on Poloniex you need 3x collatoral.

It doesn't work like that on Polo/bitfinex, you lend funds which people use to open margin trades (a trade that is separate from an exchange trade, it can only be opened or closed, you can't withdraw the funds involved in this trade until the trade is closed and the loaned btc for margin trading has moved back to the lender). Your trust is not in the actual trader/user but instead in the exchanges lending liquidation system & security practices.

I'm not going to lie, if I was going to lend I'd do it on an exchange. It's much different than loaning to rando's on the forum.

Loaning to randos on the forum = suicide

loaning to unregulated exchange users and trusting the exchange with your money = self mutilation (you must enjoy pain to proceed)

Either way you'll never see me participating I don't care how good the interest is. The risk to reward doesn't make sense...

Typical btc loan is about 0.05% to 0.1% a day, during bubbles like now it tends to go higher (currently @ 0.08%. Let's just make it simple and go with 0.1% a year annualized, which is around 36.5% profit a year if you don't miss a single day).

Is it worth it to you to risk 1 btc with a decent probability of losing it within 1 year to exchange risk (shuts down, exit scam, hack, personal account hacked etc etc) for 0.365 btc at the end?

For me, it's not. Everyone is different though.

PS - yes 36.5% is a dreamy return in the traditional market. You don't have to take insane amounts of risk to receive interest in a traditional market, in fact most bonds are federally insured meaning the risk is basically non-existant unless you feel the government is about to fail. So comparing  government/corporate issued bonds/stocks to a unregulated altcoin exchange is a mute point. Their profiles are completely different.

If your exchange fails, you will be stuck making claims in courts and by the time it all comes together the owner of said exchange will be livin the life sippin' martini's and snorting coke in Belize with 3 hookers around them, all on your dime.

I'm glad to see the UPDATE because it would be really sad if thinghs like you described were happening on Poloniex. Also it's good to see you haven't lost anything.

Yes, you are right. The moment I found out I actually tried to delete the post, but one is not allowed to delete it's own topics in this board. I adjusted the topic and first posts.

People should read first.

There was no problem, OP made an error.

Yes, Poloniex asks 15% of the earned interest. Not hidden, clearly mentioned.

that would be ridiculous and poloniex would be empty within seconds.

i have read elsewhere about people getting their margin balances eaten by poloniex costs that they hadn't expected. it was buried somewhere in the terms.

Thank God you saw the problem.
I thought there is going to be a heck of an explanation again that could end up in losing some trust rating of that great website.
I think you should edit your first post for people to see this was fixed to avoid getting more comments which sometimes could be bad and will start a bully thing again.

Good to know.
I know you can lose your coins fast with margin trading, but lending is supposed to be 100% safe. And that should be considering the profits are very low.

i don't think that is how it works, otherwise it would be silly lol, because poloniex act as an escrow in this case and hold the fund until the interests are paid completely, then they release the funds, there is no way they can cheat with this system

this is what we do if we have this problem but unfortunately, poloniex support system have bad people which is too late to answer and help the members. actually many members have this experience when they have the problems but to solving the problems need few days until support system can helped. but its still worth to try.

Well, anyhow you got the solution. Same time if you've gone without periodic update on the thread this might have served as a thread to make a negativity on poloniex. No site wishes to loss their reputation, so in future make sure everything is going good and find the support and directly don't create such threads.

I'm fairly certain that's correct.   I don't know exactly how they run their lending business,  but we all know how many scammers there are and every time bitcoin goes into bull market mode, they appear out of nowhere in great numbers.   I can't imagine a lot of them aret trying to scam polo or anyone else.   What kind of collateral does polo require?  Any?  That's what I don't know.   If they do require it, seems like a pretty safe gamble.  OP, hope you get it straightened out.

Glad to hear everything is okay!

Uf, it's sorted out (my stupid error in administration  ). Thanks for the help everybody and sorry for the confusion. It is also a reminder for me that when participating in lending/margin trade it is good to keep a very close eye on in and outgoing transfers. The information that you can gather afterwards is limited. Yet another crypto lesson learnt.

I want to mention that there was NO error of Poloniex or system glitch (what I suspected at first). No blame there.

The first and most important step is to contact Poloniex, Naturally if the active loans is not there it should be defaulted or a bug in Poloniex interfece. If you don't see a note regarding a default it's better to ask support, since they have access to the back-end and would reply with the situation.

There is a lending section on Poloniex. Margin traders can borrow coins from other users, but only if they have enough collateral coins. When the worth of the collateral is beneath certain point, Poloniex starts a forced liquidation of the funds, so that only the margin trader has a loss, not the lender.

Only in case of extreme volatility it's possible that the forced liquidation didn't cover all the lend coins, but AFAIK this never happened (but I can be wrong with that).

https://poloniex.com/support/aboutMarginTrading/

i thought the same. has polo a feature to lend BTC to someone else? without polo holding the coins? or did he lend coins in the trollbox?