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Understanding P2P Lending

7 min read 1,567 views v2Updated 2024-07-13

P2P Lending on CoinExchange.Cash

Earn interest by lending your crypto, or borrow against your holdings without selling them.

How Lending Works

For Lenders

  • Create a Lending Offer — Set loan currency, interest rate, duration, and LTV ratio
  • Wait for Borrowers — Borrowers browse and accept your terms
  • Borrower Locks Collateral — Crypto collateral is locked in escrow
  • Send Loan Funds — Transfer the loan amount
  • Receive Repayment — Get your funds back plus interest

    • For Borrowers

  • Browse Lending Offers — Find rates and terms that work for you
  • Accept an Offer — Specify loan amount
  • Lock Collateral — Deposit crypto collateral into escrow
  • Receive Loan — Get the loan currency from the lender
  • Repay by Due Date — Repay principal + interest to unlock collateral

    • LTV (Loan-to-Value) Ratio

    LTV measures how much you've borrowed relative to your collateral value:

  • Below 80%: Healthy — no action needed
  • 80%: Warning notification sent
  • 90%: Urgent warning — add collateral or repay
  • 95%: Liquidation threshold — collateral may be sold

    • Interest Rates

    Interest rates are set by lenders and displayed as APR. The actual interest is calculated based on the loan duration. All rates are visible upfront before you accept a loan.

    Collateral Types

    You can use any supported cryptocurrency as collateral:

  • BTC, ETH, SOL
  • USDT, USDC, DAI (stablecoins)
  • And more

    • Risk Disclosure

    P2P lending involves risk. Lenders may lose funds if borrowers default (though collateral provides protection). Borrowers may lose collateral if prices move against them. Always understand the risks before participating.

    Related Articles

    Getting Started with CoinExchange.Cash
    Back to Help Center
    Understanding P2p Lending — CoinExchange.Cash Help