Question about Poloniex



  • Just had a question about poloniex lending. Is it guarenteed that you will get your money back if you lend let's say XMR to someone over a time period of 2 days? Or are they able to withdraw everything and you won't get anything back.

    Also what does it mean by this? Am I getting charged for that fee as it keeps increasing over time? Is it lended out to someone and I will getmy money back in 2 days?
    alt text



  • @mathew Poloniex is pretty impressive while lending, I've been lending in there for quite some time now and never had a problem with it, how exactly they do to make sure you get your money back? Have no idea! But while searching a lot online everyone says the same thing, Poloniex is great for lending without risking your money.

    I will never put all my money in something like that though, just small amounts, remember that in life nothing is really guaranteed... ^_^



  • @Zeus said in Question about Poloniex:

    @mathew Poloniex is pretty impressive while lending, I've been lending in there for quite some time now and never had a problem with it, how exactly they do to make sure you get your money back? Have no idea! But while searching a lot online everyone says the same thing, Poloniex is great for lending without risking your money.

    I will never put all my money in something like that though, just small amounts, remember that in life nothing is really guaranteed... ^_^

    Ok great, do you know what they mean by that fee? Am I being charged that as now it is up to .00000022 XMR instead of .00000007. Also the picture that I added, is that mean that my loan was accepted by someone and I will get the XMR and the .1% rate back in 2 days?



  • @mathew The fee is charged to the person that asked for the lend, not to the person that is lending, you get a % for lending your money, so you get 0.1% for everyday lended.

    My Open Loan Offers is when you create an offer, and My Active Loans means that someone has accepted your offer, so yes you have successfully lended out some XMR 😃

    Also if you see in the My Balances tab you may find the amount that you already have generated (the fees in your picture).



  • @Zeus said in Question about Poloniex:

    @mathew The fee is charged to the person that asked for the lend, not to the person that is lending, you get a % for lending your money, so you get 0.1% for everyday lended.

    My Open Loan Offers is when you create an offer, and My Active Loans means that someone has accepted your offer, so yes you have successfully lended out some XMR 😃

    Also if you see in the My Balances tab you may find the amount that you already have generated (the fees in your picture).

    So the fee that is in my picture is kind of the amount that I am currently getting back from the person I am guessing?



  • @mathew Yes 😃



  • @Zeus said in Question about Poloniex:

    @mathew Yes 😃

    Awesome! Also have one more question here would be an example. If you are looking for 1 BTC with .1% interest and I offer you .5 BTC for .1% will it accept it or does it have to be what your looking for?



  • @mathew It only needs to be the same rate. So for your example, yes it will be accepted.

    Also the other way around, If I have 0.5BTC and someone asks 1BTC, it will take 0.5 from me and find the rest with other lenders for example player B have 0.25 and player C that also have 0.25 to complete the 1BTC.



  • @Zeus said in Question about Poloniex:

    @mathew It only needs to be the same rate. So for your example, yes it will be accepted.

    Also the other way around, If I have 0.5BTC and someone asks 1BTC, it will take 0.5 from me and find the rest with other lenders for example player B have 0.25 and player C that also have 0.25 to complete the 1BTC.

    ok awesome thanks! I am gonna try out the lending more! Just hope I can't get scammed 😃



  • @Zeus said in Question about Poloniex:

    @mathew It only needs to be the same rate. So for your example, yes it will be accepted.

    Also the other way around, If I have 0.5BTC and someone asks 1BTC, it will take 0.5 from me and find the rest with other lenders for example player B have 0.25 and player C that also have 0.25 to complete the 1BTC.

    One more question is with that example does my loan interest start when I offer and it gets accepted or when his total BTC loan is filled?



  • @mathew Lending 0.5 BTC, wanted 1BTC, it needs to have 1BTC in total to lend yours, what I mean is Poloniex won't lend just 0.5 and then find more, in total it needs to be available to lend 1BTC or more. Sometimes you see like 2 BTC or more at 0.12% for example; this can be one person money or many person money together.



  • So if you need 1BTC and I lend out .5BTC, someone else has to give you .5BTC for my offer to take affect?



  • @mathew
    No doesn't matter, in most cases people are just going to take a loan at a higher rate instead of waiting. An example would be taking a 1 BTC loan, but there isn't enough to take it from 1 person. He will simply take the loan at variable rates: 0.5 at 0.1%, 0.3 at 0.11% and 0.2 at 0.15%.

    If you want to know about the security behind margin lending, it is pretty simple. The person loaning from you, puts 0.4% of the loan as collateral and trades with the loan they just accepted. They will always (There are some exceptions) be able to pay the loan back + interest. This is because if they lose 0.4% + (interest) of the loan about, their funds will get liquidated. This means you will your loan back and they will lose their money. The exchange always has control of the loan, because they are unable to move it out of the "Margin" section. There is almost 0% risk with this type of lending.

    If you want to know more, just ask. My asset Margin is lending money on Poloniex, so I know quite a bit about it. I'm slowly moving away from margin lending, but not in the near future.

    I don't know if any of this was confusing. I might be able to reformat it in a different way if you need it.



  • @FrilledShark said in Question about Poloniex:

    @mathew
    No doesn't matter, in most cases people are just going to take a loan at a higher rate instead of waiting. An example would be taking a 1 BTC loan, but there isn't enough to take it from 1 person. He will simply take the loan at variable rates: 0.5 at 0.1%, 0.3 at 0.11% and 0.2 at 0.15%.

    If you want to know about the security behind margin lending, it is pretty simple. The person loaning from you, puts 0.4% of the loan as collateral and trades with the loan they just accepted. They will always (There are some exceptions) be able to pay the loan back + interest. This is because if they lose 0.4% + (interest) of the loan about, their funds will get liquidated. This means you will your loan back and they will lose their money. The exchange always has control of the loan, because they are unable to move it out of the "Margin" section. There is almost 0% risk with this type of lending.

    If you want to know more, just ask. My asset Margin is lending money on Poloniex, so I know quite a bit about it. I'm slowly moving away from margin lending, but not in the near future.

    I don't know if any of this was confusing. I might be able to reformat it in a different way if you need it.

    ahh ok that answered some of my questions? Why would you move out of loaning when it seems like it could be profitable?
    Also When people ask for say a 500 XMR loan is that truly legit or could they some how take your money and not repay?
    Example:
    alt text



  • I never tried the lending section of Poloniex, will give it a try with 0.01 btc now 🙂 potential earnings from this will go to buy more Burst of course, hehe.



  • Got my first active loan 🙂 Could someone explain how the auto-renew works?



  • @Propagandalf said in Question about Poloniex:

    Got my first active loan 🙂 Could someone explain how the auto-renew works?

    When the loan is completed after the time period it will go back onto the offers so someone can get a loan from you again



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  • @mathew
    They can't take the loan and not repay it.

    I'm moving out of Margin lending because it is unpredictable and there is better ways to invest BTC to earn a more and stay competitive with other assets. Currently I'm providing loans on Bitcointalk and here. They can pay 10% on a 7 day loan instead of 0.14% (0.02% a day).



  • @FrilledShark You appear to studied this market space rather in depth and appear to be doing well in it, congratulations. I hope other can heed your advice and past experience to strengthen values. I understand margin trading and lending both but didn't even know it was a built in feature on Poloniex. Maybe you could answer a couple of question I have about Cryto-Magrin Loans

    • Is there a specific type of coin (eg BTC, ETH, Burst) that is better than any others for offering Margin Loans? Is better defined as faster investment or higher rate of return?
    • What is the expected range of rates for short term loans (under 7 days)?

    Thanks,

    --IceBurst