FAQ

What Is P2P Lending?

Peer-to-peer (P2P) lending is a method of financing that allows individuals to borrow and lend money without the need for traditional financial intermediaries like banks. By connecting borrowers directly with individual investors through our platform, P2P lending facilitates access to funds for those who might not qualify for conventional loans while offering lenders potentially higher returns on their investments.

Why Should You Use It?

In comparison with other crypto lending platforms, our P2P platform comes a series of advantages.

Flexibility

As a lender, I set the terms for lending my capital, including the collateral type and amount, loan duration, and interest rate. As a borrower, I can choose a suitable loan and can potentially negotiate the terms with the lender.

Optional Liquidation (Coming soon)

To mitigate risk, automated liquidation may occur if the collateral value decreases, ensuring the lender's protection against losses. Lenders can choose to enable automatic liquidation; otherwise, the loan will adhere to a predefined time span.

Segregated Funds Minimize Risk

Each loan is independent from others, ensuring that funds from different loans are not pooled together. This separation of funds serves a crucial role in minimizing the overall protocol risk. By maintaining independence between individual loans, potential issues with one loan do not impact the others. As a result, both lenders and borrowers can participate with greater confidence, knowing that the integrity of their specific loan agreements is preserved.

What Are The Disadvantages?

Due to the peer-to-peer nature of the platform, borrowing and lending transactions can only be completed once a suitable counter-party is found. This decentralized approach requires a match between individuals looking to lend their funds and those seeking to borrow. The system relies on the participation of its users to create a balanced marketplace where both lenders and borrowers can meet their respective needs.