Quote from: arbitrage001 on June 30, 2014, 08:17:20 AM

Quote from: nick32768 on June 30, 2014, 07:02:01 AM

Quote from: Dalmar on June 29, 2014, 06:15:25 PM

Quote from: TheJuice on June 29, 2014, 05:15:53 PM

more and more people are realizing 10% interest a month on bitfinex will almost certainly make more than long term btc holding.

At 10%/month (what I've been making at finex), btc would have to be 6000 in 2 years.

I doubt most lenders lend out for months given the risk of goxings. Most are just lending out for a brief period.

I usually lend 66% of my money and use the remaining 33% for trading. Is a good balance, because the lends gives me a steady income (about 1.8%/week), while with the trading money I can have a good income from the market movements (like now... +30$ in 30 minutes).

Usually I lend money for 2 or 3 days, except when the offer goes over 0.4%, in this case I lend them for 30 days (but usually are closed earlier).

Nick.

I see people mention 10% a month (0.333% daily rate) and you mention 1.8% a week (0.257% daily rate).

I am only seeing 0.16% daily rate right now.

As for flash crash people mentioning here, I sincerely hope it won't happen. In the event of flash crash (and price do not recover on all exchanges), it will be extremely difficulty to unwind 26M usd worth of swap. A more likely scenario would be settled outstanding swap using bitcoin with lender.

Lenders would need to take some kind of "haircut" if the borrower was unable to unwind their position without a 101%+ loss