What I am saying is that we allow them to use as collateral.
1. They use X amount of XPY as collateral and a virtual lock goes to those XPY in their wallet.
2. They get a loan.
3. They pay back and get their wallet unlocked.
They don't pay, their XPY gets sold and given to the Investor.
We never get their XPY unless they don't pay.We hope we never get to that.
We will do the same with BTC Mining Contracts and some BTC Exchanges.
You
might not be associated with Josh Garza and GAW, but you sure like to speak in half truths the same way he does. What I am seeing here is that you are allowing
BTC loans with XPY at current value as collateral, and then paying back the loan (after default) with XPY at the new current rate (always lower). That = ability to short XPY. That sir, is completely insane. XPY drops continuously. Are each and every one of your investors aware that you are doing this? How about if Josh Garza wants to borrow a large amount of
BTC? Does the same deal go for him, even though he has an infinite supply of XPY?
You are correct, this is why Collateral loans cant be for too long and loans are for up to 80% of collateral, again, looking to minimizing risk to the investors. Trying to do better that just trusted based loans.
You as the investor will have choices. You can invest in loans that are secured by BTC Mining, or XPY or an Exchange Contract. It ill always have an advantage over trusted based loans.
Man, why you insist to try and offend? Half truth? What is your basis for this? Just ask and get answers.