Is the lending section of Poloniex risk free - page 2.

crazyivan

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Quote from: CrimBit on March 09, 2016, 09:47:58 PM

Quote from: crazyivan on March 04, 2016, 12:16:30 PM

Lending s risk free, borrower cannot default on the loan since they have already deposit margin funds to cover any potential loss. However, it s an online transaction, there s always a risk of exchange going down, being hacked or similar.

so the risk come only from poloniex..? before it i try this feature i want to ask, when lender can get his money back..? any chance we can take his money when he need..? maybe after 1hours

Dont understand the question quite. The lender can close the loan whenever he wants, even after 5 minutes. Then you have to try to lend it again.

lemipawa

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I havent tried the lending or borrowing from poloniex but I think thier investment with lending bitcoins to polonix users are secured with the altcoins stored in poloniex by the borrower. Just like in the lending section in this forum, collateral can be alts that borrowers dont want to let go.

Regionit

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Quote from: crazyivan on March 04, 2016, 12:16:30 PM

Lending s risk free, borrower cannot default on the loan since they have already deposit margin funds to cover any potential loss. However, it s an online transaction, there s always a risk of exchange going down, being hacked or similar.

If the borrow bought a very illiquid coin and the price dropped 70% in one go, then Poloniex might not react fast enough to sell the coins.

CrimBit

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Quote from: crazyivan on March 04, 2016, 12:16:30 PM

Lending s risk free, borrower cannot default on the loan since they have already deposit margin funds to cover any potential loss. However, it s an online transaction, there s always a risk of exchange going down, being hacked or similar.

so the risk come only from poloniex..? before it i try this feature i want to ask, when lender can get his money back..? any chance we can take his money when he need..? maybe after 1hours

ronaldinho_07

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Well in the past i were just trading altcoins with my bitcoins ,buying and selling till the day they offer the loan service and after a deep research its 99.9%safe to lend your bitcoins as no one can withdraw any cent before pay the loans,and to get a loan they need to put some coin into margin trade,that works like colateral,the usually interest is under 0,05% but these days with market of altcoins hot,being eth one of the involved the interest has achieve 1% and above .

Bestwishes745

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lending any where has the same results. so you can give loan to a person, to those whom you know personally or who keep some collateral etc for that. It also depends on the faith of the person who ask for loan.

crazyivan

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Lending s risk free, borrower cannot default on the loan since they have already deposit margin funds to cover any potential loss. However, it s an online transaction, there s always a risk of exchange going down, being hacked or similar.

amacar2

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I think this thread better suite for service discussion board. However talking about lending i haven't tried this in polo but i am using polo for altcoin trading from start without any problem in deposit and withdrawl so they are trusted. But lending bitcoin to other users is quite risky (my personal view).

ronaldinho_07

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Any person to get a loan into the poloniex must put some coin into the margin trade,these funds works like colateral,if the person has no funds to repay the interest and the loan,the coin at margin trade will be sold and should cover the ammount lended,i didnt heard any history about no one get the money lended to other and the fee,the system proctects who lend since the person who aply cant withdraw any penie before pay the lending soo its 99% safe system but there is a risk.

jacee

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This might answer your question:

Although Poloniex takes several precautions to prevent a user from defaulting on a loan, the high volatility and substantial risk of illiquidity in markets means that Poloniex cannot make any guarantees against default. When you lend to other users using the Platform’s P2P lending system, you risk the loss of an unpaid principle if the borrower defaults on a loan and liquidation of the borrower's account fails to raise sufficient funds to cover his or her debt.

basically, it has risk since it depends on the person on how he is going to managed the borrowed coins in his trading.

X-ray

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I think just like other lending service it has risk. The borrower could loss profit thus will not have enough coin to repay but I think poloniex does something to ensure that someone can repay regardless if the borrower did profit or not from the loan he got.

XERES

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one of the three main headers is lending, where you can give your btc to other traders under a loan basis, is this risk free ?
what happens if they fault on the loan?

Topic: Is the lending section of Poloniex risk free - page 2. (Read 13502 times)