For LendersLast Updated: January 23, 2019
What do I need to become a lender?
You just need to register to the platform and send to your in-app wallet some Ether and any of the medium of currencies accepted in order to fund a loan or create a loan offer. The accepted currencies are:
- ETH pegged to USD, EUR, GBP, INR, KRW, JPY and CNY.
What are the terms of the loan?
As a peer to peer lending platform the terms of the loans are set by the loan creator. You can fund a loan request of a borrower or create your own loan offer with your desired terms.
What if the borrower doesn’t pay back?
The loans are overcollateralized with a maximum of 50% (55% using LEND as collateral), that means that to ask for a loan, the borrower needs to send to the smart contract 200% of the value of the loan in crypto assets (BTC, ETH, LEND, ERC20 tokens). If the borrower doesn’t pay back in time, you will still get your payments plus a liquidation fee from the collateral.
What happens if the collateral value decreases?
If at some point of the loan duration, the collateral price reaches the loan amount plus interests plus the liquidation fee you will be able to call the collateral, take your payments from it and finish the loan.
Will I be notified in an important situation as a collateral call?
Yes, you will receive an email notification:
- When the current price of the collateral is above the collateral call price by 20% and 10%.
- When the loan is collateral called.