So would you guys recommend lending money to Bitfinex to take advantage of the interest? Are they trustworthy? Do you have to provide documentation to verify your account?
It is not recommended unless you are already trading on bitfinex and sold near a top and are waiting for a few days for the market to go down. Lending out for the long term is too risky due to flash crashes and exchange goxings.
I was lending all the money I have on BFX the day of the crash, I think it was Feb 10th, and I did not had any loss. The only thing that happened was: many of my lend lots where closed very rapidly (i think because of people were automatically forced to sell).
The only real risk tat I see with BFX is the fact that the company is really small and not incorporated, so they can simply vanish with not so much consequences for them.
Nick.