Title: Lending Board Rules of Engagement - Attention Lenders and Borrowers Post by: DireWolfM14 on July 23, 2023, 05:35:43 AM
. Introduction: The Bitcoin Forum is committed to providing a free marketplace for all to trade and transact without any official limitations. This is a truly free, capitalistic economy, or, as the administrator has described it, "anarcho-capitalistic." As such, it's up those who engage in this economy to protect themselves. Caveat Emptor! However, that doesn't mean that you are completely on your own. There are many reputable members of the forum who are committed to keeping the forum safe, and thwarting scammers before they have a chance to cause damage. One of the tools available to members is the Trust System (https://bitcointalk.org/index.php?topic=5191802.0), which is intended to provide participants with feedback that others can use to judge a potential trade partner's trustworthiness. The trust system is decentralized in the way that it is left to the community to manage. It may not be perfect, but the philosophy aligns with the forum's commitment to a free marketplace. In the Lending sub-board this poses a few challenges for those who are new to the forum. If you are a newbie to the forum or the Lending board it would behoove you to take a few moments to learn a little bit about the culture and expectations when requesting a loan or offering to lend to others. These are not official forum rules, not even unofficial forum rules. These are simply my observations and suggestions based on years of experience (good and bad) participating in, and monitoring this segment of the forum's economy. . Borrowers: If you are requesting a loan I suggest you follow these guidelines to keep yourself and your account safe.
. Lenders: If you plan to offer a lending service, you must assume many risks, not the least of which is giving the community the wrong impression about your motives. You will increase your chances of success if you follow these simple suggestions:
. Collateral: The question of what constitutes valid collateral often comes up, and is often met with some debate. Only the lender can decide what collateral suites his risk profile, however the following guidelines can help borrowers assess the likelihood of their secured loan request being accepted.
Title: Re: Lending Board Rules of Engagement - Attention Newbies Post by: DireWolfM14 on July 23, 2023, 05:35:57 AM Local Rules:
This thread is for the discussion of general lending and borrowing practices, the validity of specific types of collateral, and the overall safety of lending and borrowing activities. The following types of posts will be seen as off topic and removed:
Title: Re: Lending Board Rules of Engagement - Attention Newbies Post by: Timelord2o67 on July 23, 2023, 07:20:19 AM There are other issues that should be addressed at this point in time such as lenders facilitating second or even third loans to borrowers who have already taken out loans with other lenders.
Then there is the issue of some lenders having not updated their OP in a very long time and still state e.g they accept forum accounts as collateral, then having to explain to potential borrowers that they don't. Transaction details shows a level of honesty that a loan has been provided and also repaid. I've seen a number of instances recently where loans have been taken out with no TX then when the lender is queried they can't recall or give a vague answer they think the loan was repaid. (Not to mention sock puppet loans to make a lender or borrower look as though successful loans have occurred) May I also suggest you have a paragraph covering what "interested bystanders" are likely to do if loans are e.g. not repaid? / unreasonable demands for loans? / placing warnings when a loan has been provided but the lender hasn't placed a note on the borrower's trust feedback of the loan having occurred. Can we also discuss this section is not a "buy positive trust feedback" exercise. In the past some lenders have stated they will only provide loans with a *neutral* trust feedback upon successful repayment. Title: Re: Lending Board Rules of Engagement - Attention Newbies Post by: CryptoHFs on July 23, 2023, 07:47:30 AM Shouldn't they create a childboard specially for the investments or ventures? Or this should be fine to go in the services section as I did before?
Title: Re: Lending Board Rules of Engagement - Attention Newbies Post by: DaveF on July 23, 2023, 10:47:57 AM Borrowers also keep in mind in addition to the You are not entitled to a loan statement the fact that at least a few people here, myself included, when we do loan look at what you post about. It comes down to personality. If I see you frequently post things that i disagree with be them in crypto world / political world / tech world and so on. I will probably not loan you anything. And I'm am reasonably certain that others do that too. It's just the way human brains are wired.
Also for borrowers, there are certain forms of collateral that some people will take, BUT there can be more hassles involved. Most people will not take domains as collateral st least here. From the people that do some registrars will not let you transfer more then once every 60 to 90 days. So even if you pay back on time or early you still may have to wait. Lenders, always keep fees in the back of your mind. It's great that you were willing to accept Dave's Left Testicle token as collateral. It's trading a $1 and you took 500 of them for a $400 loan so you have a nice 25% buffer. And you did a loan at 25% so you are getting a nice $100 payout in 30 days when you get paid back. But we have another gas fee run up on eth or some new token is issued on the BTC network and fees skyrocket again. Tough. You get paid back, you have to send back the collateral. Does not matter if it's now going to cost you $60 of that $100 profit. I'm sure that there is more that escapes me at the moment. @DireWolfM14 thanks for making this really needed post. -Dave Title: Re: Lending Board Rules of Engagement - Attention Newbies Post by: LoyceV on July 23, 2023, 06:21:47 PM Lenders: I'd like to add this:Out of character loan requests: Watch for loan requests from users you wouldn't expect it from. If, for example, I would ask for a large loan, don't jump at the opportunity! I've never asked for a loan before, and this should be treated as a big red flag (https://bitcointalk.org/index.php?topic=5459055.msg62520404#msg62520404). Then again, a user who often takes loans might be building up for bigger and bigger loans, so that's not an ideal scenario either. Even if he isn't planning for an exit scam, at some point he may no longer be able to pay back all loans. We call that "filling one hole with another". Title: Re: Lending Board Rules of Engagement - Attention Newbies Post by: JeromeTash on July 23, 2023, 07:29:38 PM This should be for the borrowers.
I think a signed message from a borrower's old staked address should also be a standard practice when one if requesting for a loan. Yes, it might nowt avoid an intended exit scam, but it could very much avoid scenarios of someone silently hacking into a high ranked member's account and then using it to borrow a loan like it was in this case (https://bitcointalk.org/index.php?topic=5459055.0) Thanks for the post @DireWolfM14, that was very thoughtful of you. At some point in time, this should be pinned. Title: Re: Lending Board Rules of Engagement - Attention Newbies Post by: DireWolfM14 on July 23, 2023, 08:00:52 PM @Timelord2067, @DaveF, @LoyceV, @JeromeTash,
Thank you all for the great suggestions, I've implemented them all in one form or another. Shouldn't they create a childboard specially for the investments or ventures? Or this should be fine to go in the services section as I did before? There's a "Long Term" sub-board in this section for such requests and the Services board, like you mentioned or the Gambling sub-board, Investor-based games. Title: Re: Lending Board Rules of Engagement - Attention Lenders and Borrowers Post by: NotATether on August 15, 2023, 07:52:40 AM I would suggest that you add a section in the Borrowers category to pay attention to interest rates. People might think that they can just pay back what they borrowed, when the lender has different terms.
As a matter of fact, you should also suggest to borrowers to pay attention to the loan terms, since reading the fine print is just as important as avoiding what not to do when requesting for the loan. Title: Re: Lending Board Rules of Engagement - Attention Lenders and Borrowers Post by: PrimeNumber7 on December 23, 2023, 04:00:28 AM
For example, someone might be selling a physical coin, but needs money immediately. The seller/borrower may have already sent the coin to MJ, or some other reputable escrow (and they have received the physical coin), but will take some time to sell/auction. |