Provided collateral WILL be 120% of principal amount + interest + escrow fees (if any). If SimCoin loses value up to estabilished threshold in the chosen exchange collateral will immediately be sold and the loan will end.
Anyone not accepting these simple rules should be marked as scammer and ignored, as he is willing to put the lender at risk to offset his own.
This makes sense for a good collateral, but a random shitcoin isn't a good collateral by any mean: the pseudo-exchange trading it might easily go down, barring you from cashing out while the "coin"'s value collapses.Anyone not accepting these simple rules should be marked as scammer and ignored, as he is willing to put the lender at risk to offset his own.
Not an unlikely scenario, hence either that collateral is much much higher than the sum itself (say, 350%? 1000%?) or I wouldn't advise to accept this offer.
