I would like to see what happens when Bitfinex has a loss they try to pass on to the "lender". Which lender gets the loss? Do they spread it out over all the lenders? If they stick it to one lender, then how do I know that it is my counterparty that did not pay since I have no idea who is the counterparty is to my trade?

Now, if in the liquidity book they put user names and ratings, and I could decide if I wanted to lend to XYZ or ABC, that would be a different story.