[CLOSED] Tomatocage's 1% interest loans, up to 20 BTC (collateral required) - page 8.

Tomatocage

legendary

Activity: 1554

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brb keeping up with the Kardashians

Quote from: posormo on September 09, 2013, 11:36:27 PM

Yes, and the collateral should also be secure. No mention of what would be done with the litecoins. Will he simply hold them, or will he play investment games with them. Whose to say the borrowers would ever see their collateral again should something like the gox rumors make the price sky rocket.

That's a risk people take when entrusting their coins with anybody, whether that be me, Theymos, John K, or Joeyjmr8484.

posormo

member

Activity: 109

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Quote from: monbux on September 05, 2013, 05:28:26 PM

Quote from: Tomatocage on September 05, 2013, 05:25:04 PM

Quote from: murraypaul on September 05, 2013, 05:22:52 PM

And in the case of no default, you've received an interest free loan of 2 BTC for a week, you can't really lose.
It certainly isn't dumb from your side of the deal.

I'm giving out interest-free loans, so it's only fair, no?

Yes, that is a very smart way to do it, way to go. Murraypaul, A collateral is always supposed to be worth more than the actual loan.

Yes, and the collateral should also be secure. No mention of what would be done with the litecoins. Will he simply hold them, or will he play investment games with them. Whose to say the borrowers would ever see their collateral again should something like the gox rumors make the price sky rocket.

Stunna

legendary

Activity: 3192

Merit: 1279

Primedice.com, Stake.com

This is the way loans should be done, the massive interest/default rates are simply a joke. Great how sustainable this is as well, there is so much incentive for the borrower to pay you back and even if they don't you profit. I'm sure we're going to see a lot more threads like this soon.

Exceptions to collateral should only be made for highly trusted members and only with good reason.

zackclark70

legendary

Activity: 868

Merit: 1000

ADT developer

Quote from: Tomatocage on September 07, 2013, 10:38:28 AM

Quote from: zackclark70 on September 07, 2013, 10:36:39 AM

everyone wants to do LTC as collateral since my 5btc loan lol

Yeah man, you set the high-water mark. So if anybody complains about the terms, you're to blame Tongue

I am glad I set the bar so high as it has lead to 0 interest loans for more people and hopefully makes the use of collateral more wide spread

what you are doing is good and I hope more people do the same

(I sent 500LTC collateral for a 5BTC loan so your doing it for a lot less % wise just remember that LTC can go up or down over 20% don't want you to end up out of pocket )

Tomatocage

legendary

Activity: 1554

Merit: 1222

brb keeping up with the Kardashians

Quote from: zackclark70 on September 07, 2013, 10:36:39 AM

everyone wants to do LTC as collateral since my 5btc loan lol

Yeah man, you set the high-water mark. So if anybody complains about the terms, you're to blame Tongue

zackclark70

legendary

Activity: 868

Merit: 1000

ADT developer

everyone wants to do LTC as collateral since my 5btc loan lol

TMAN

legendary

Activity: 1414

Merit: 1808

Exchange Bitcoin quickly-https://blockchain.com.do

Will you take btct shares as collateral?

🏰 TradeFortress 🏰

vip

Activity: 1316

Merit: 1043

👻

Quote from: malevolent on September 06, 2013, 06:44:30 AM

What would prevent someone from simply exchanging the LTC to BTC?

They may not always want to - for example, if they want to hold a long position on LTC but need BTC.

malevolent

legendary

Activity: 3472

Merit: 1722

What would prevent someone from simply exchanging the LTC to BTC?

C10H15N

legendary

Activity: 944

Merit: 1026

Quote from: Kouye on September 05, 2013, 05:42:40 PM

You cannot blame 0 risk, 0% loans.

or a currency exchange with a 20% fee. I'm watching with interest.

Kouye

sr. member

Activity: 336

Merit: 250

Cuddling, censored, unicorn-shaped troll.

This thread is 50% educative and 50% trollish, and thus I like it. Grin

As much as I sincerly doubt anyone will use it - although it might prove to be very useful in some rare circumstances, 0% loans need to be praised.
Stunna who offered the same service without the collateral requirement already got scammed for 0.4BTC, it seems.

You cannot blame 0 risk, 0% loans. They can be useful to some people, period.

Tomatocage

legendary

Activity: 1554

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brb keeping up with the Kardashians

Quote from: murraypaul on September 05, 2013, 05:27:17 PM

You are receiving interest free loans. It is equivalent to:
You provide me with 10 BTC collateral, and I loan you 12 BTC worth of LTC for a week.

It sure is a strong deterrent from running off with my coins though, isn't it?

monbux

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Activity: 1736

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Quote from: Tomatocage on September 05, 2013, 05:25:04 PM

Quote from: murraypaul on September 05, 2013, 05:22:52 PM

And in the case of no default, you've received an interest free loan of 2 BTC for a week, you can't really lose.
It certainly isn't dumb from your side of the deal.

I'm giving out interest-free loans, so it's only fair, no?

Yes, that is a very smart way to do it, way to go. Murraypaul, A collateral is always supposed to be worth more than the actual loan.

murraypaul

sr. member

Activity: 476

Merit: 250

You are receiving interest free loans. It is equivalent to:
You provide me with 10 BTC collateral, and I loan you 12 BTC worth of LTC for a week.

Tomatocage

legendary

Activity: 1554

Merit: 1222

brb keeping up with the Kardashians

Quote from: murraypaul on September 05, 2013, 05:22:52 PM

And in the case of no default, you've received an interest free loan of 2 BTC for a week, you can't really lose.
It certainly isn't dumb from your side of the deal.

I'm giving out interest-free loans, so it's only fair, no?

murraypaul

sr. member

Activity: 476

Merit: 250

And in the case of no default, you've received an interest free loan of 2 BTC for a week, you can't really lose.
It certainly isn't dumb from your side of the deal.

Tomatocage

legendary

Activity: 1554

Merit: 1222

brb keeping up with the Kardashians

Quote from: murraypaul on September 05, 2013, 05:08:07 PM

(Scratches head)
So I send you 12 BTC worth of coins, and in return you send me 10 BTC worth of coins, and a week later we swap back?
See, to me that isn't you lending me 10 BTC, it is me lending you 2 BTC. (And paying all fees, and having no security.)
Is anyone dumb enough to take you up on it?

What's so dumb about it? In the event of a default, I have 120% of the value I loaned out. If you're long on LTC and don't intend on selling any time soon, but you need an extra 10 BTC infusion, this is a perfect opportunity. These loans are not for those who have nothing to begin with, nor are they for those who have no intention of paying back. Though I certainly welcome the latter Cheesy

murraypaul

sr. member

Activity: 476

Merit: 250

(Scratches head)
So I send you 12 BTC worth of coins, and in return you send me 10 BTC worth of coins, and a week later we swap back?
See, to me that isn't you lending me 10 BTC, it is me lending you 2 BTC. (And paying all fees, and having no security.)
Is anyone dumb enough to take you up on it?

monbux

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Activity: 1736

Merit: 1029

Quote from: Tomatocage on September 05, 2013, 04:21:22 PM

Yeah 1 week is just the default term. If you need a different term length, just throw it out there and we'll go from there.

Oh ok, Was just wondering why such large loans have such little time

Tomatocage

legendary

Activity: 1554

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brb keeping up with the Kardashians

Yeah 1 week is just the default term. If you need a different term length, just throw it out there and we'll go from there.

Topic: [CLOSED] Tomatocage's 1% interest loans, up to 20 BTC (collateral required) - page 8. (Read 11435 times)