Re: [OFFICIAL]Bitfinex.com first Bitcoin P2P lending platform for leverage trading
As previously mention,
The Lender's side of BitFinex is beginning to Look
more and more attractive, 14% interest compounded Daily ?,
that would be 420% monthly, not a bad deal, especially if one
adds in the fact of the Platforms heavy hand in protecting lenders,
it's a "No-Brainer", or in the U.S.A. it's called "Predatory Lending".
So, taking your argument further, when a trader has more than 14% profit per day (not uncommon in this market), we should call it "Predatory Profit-making"?
That's the risk-reward benefit of being a "Trader"
I guess the lenders are still exposed to risk of default from trader, as a trader may have a negative balance in an event like this. The trader may just go away with a negative balance account.
I guess this makes the difference on offering insurance (btw, the amount of insurance funds are actually very small when compare to the total active swaps)
That exact risk is why I did not become a "Lender" from the start.