[USD and BTC needed]People are ready to pay high to trade. Take advantage of it!

[unclescrooge]

Hi all,

We'd like to present you our lending feature on Bitfinex. On this platform we allow traders to open leveraged position by borrowing funds from our lenders. And because bitcoin is volatile, people are ready to pay a high rate to leverage their trade. Currently, lenders are USD at an average rate of 39% a year, and BTC at an average rate of 16% a year! And yes, this are real loan taken by traders.
But we don't want to advantage one side of the market so we try to keep balanced reserves of each currency. That's why we need additional lenders!

Funds need updated on January 11th 2013:
Current needs:
We currently need:
-Over 40 000 USD to lend on Bitfinex
-Over 700 BTC to lend on Bitfinex

Managed accounts

If you're willing to lend more than 2000 USD or 200 BTC, I can manage your account for you, for free. You will have an access to your account at any time on Bitfinex, but I'll manage your lending offers to maximise your return. You will be able to withdraw your funds by confirming your request by email and/or PM for additionnal security.

Questions:

Q:I want to be a lender, what do i do ?
A:Go to bitfinex.com, open a "deposit" account, add funds to your account and read this ....https://bitfinex.com/pages/iwantto#lend

Q:How are interest rates calculated?
A: The interest is set by the lenders and the supply and demand will determine which offers are accepted?

Q:Why don't I earn interest even if I have a positive balance on my account?
A: Because no one can guarantee that you funds will be used

Q: Who use my funds ?
A: traders who want to trade on leverage

Q:Why make this thread ?
A:Bitfinex.com dont want to encourage one side market and thus keep balanced reserves of each currency.

Q:What you will do to not advantage one side of the market?
A: Post regular updated about the general needs for funds if there is any imbalance on the system

For any other questions, please check:
https://bitfinex.com/pages/security for how secure Bitfinex is
https://bitfinex.com/pages/iwantto for general Howtos
https://bitfinex.com/pages/howitworks for how Bitfinex works
https://bitfinex.com/pages/faq for general questions
or https://bitfinex.com/pages/contact

[Bendur]

Impressive rates. The only problem I see is whether you can keep the coins safe or not.

[myself]

Impressive rates. The only problem I see is whether you can keep the coins safe or not.

since most of trading happen on mtgox most of funds are also there

[BR0KK]

The last one giving ultra high rates like this had a funny name to .... We know he sailed away some month ago...

Could you explain to a noob why I should trust you with my precious BTC?

[myself]

The last one giving ultra high rates like this had a funny name to .... We know he sailed away some month ago...

Like OP is explaining BFX do not offer you interest is just giving you the opportunity to lend to other traders

Could you explain to a noob why I should trust you with my precious BTC?

if is you "precious" you should keep it in your pocket or the hobbits can find them     

[BR0KK]

So it's a service like BTCjam?

I'll test it anyway. Hope this time (got scammed @ BTCJam (twice... Shame on me)) it'll work well€

[myself]

your funds are used to leverage traders positions
your money do not leave bfx
the traders cant take out the money and spend it

this is a simple example of what's happening with your funds

Also, what happens to your lended funds if the person you lend to gets liquidated?

you get them back   liquidation is based on traders funds
example you are long term holder and decide to lend bitcoins
trader 1 take your 100 bitcoins and start shorting at the price of 10 usd per bitcoin
if the trader 1 have 500 USD he can afford a 500 USD loss (he is liquidated a bit earlier but to keep this simple) he can afford 5 usd loss per bitcoin
so the trader 1 will be liquidated at 15 usd per bitcoin
when trader 1 go short the 100 bitcoin at 10usd the platform gets 1000 USD from that sell plus it own 500 usd that make 1500 sufficient funds to buy back your 100 bitcoins at 15 usd per btc

also here you can see the average rate for active loans atm https://bitfinex.com/pages/interest

[gabbergabe]

Thanl you will follow closely!

[yogi]

I have been trading on bitfinex and, as such, borrow money from depositors. I have to put down a margin to cover the credit risk of the lenders. It's not possible for me to withdraw money that is locked up in a position. I couldn't default on these debts even if I wanted too, so the lenders are always paid back what they are owed.

Also the guys at bitfinex are friendly, and they resolve any problems quickly.

[unclescrooge]

Impressive rates. The only problem I see is whether you can keep the coins safe or not.

Hi,

See how we take care of your coins: https://www.bitfinex.com/pages/security

Basically: Funds are on our wallet, on mtgox (mostly) and on our bank account. On bitfinex servers, there is no hot wallet (only a cold wallet using Armory client), and no withdrawal API key for Mtgox. That means that even if someone could hack bitfinex, there is nothing to steal there. And yes, we do have proper backup of keys and wallet

The rates are not that high for bitcoin world, and it's the market rate between what traders are ready to pay and what you are willing to lend for.

Also, a tip for lenders: you don't always have to set the lower rate. Lending offers for 60 days are far more easily taken than lending offers for 7 days. So when you look at what others lenders are offering, don't just look at the rate, also look at the lending period.

I have been trading on bitfinex and, as such, borrow money from depositors. I have to put down a margin to cover the credit risk of the lenders. It's not possible for me to withdraw money that is locked up in a position. I couldn't default on these debts even if I wanted too, so the lenders are always paid back what they are owed.

Also the guys at bitfinex are friendly, and they resolve any problems quickly.

Yep, we "force" traders to pay back lenders, no worry here. And thanks for the words Yogi, we appreciate it

So, update of our need: We will have quite a lot of BTC lended in the next few days. We need at least 10 000 USD to not influence the market. Don't miss the opportunity!

If you need help in managing your account (to get the best rates and lending practices), send me a PM. Free account management offered!

[unclescrooge]

We have big BTC lenders coming in, we more than ever need USD lenders

[BurtW]

Do you have any idea how much it would cost me to do a wire transfer into your account in France from my account in the US?  I might be interested in this on the USD side.  The BTC side is easy, of course.

[John (John K.)]

Is there any assurances that you won't pull another Bitcoinica at us? I'm still wary of borrowing out my coins out, seeing how Roger and co fared in getting their coins back via court cases.

[myself]

Is there any assurances that you won't pull another Bitcoinica at us? I'm still wary of borrowing out my coins out, seeing how Roger and co fared in getting their coins back via court cases.

put only amounts that are comfortable for you if said quantity is 10 put 10 if is 1 put one, on the other hand I can reply to your question with another one, do you demand the same amount of assurances to all bitcoin services ? just want to check if you have different standard for different services we can have along discussion about this topic and there is even a thread for that https://bitcointalk.org/index.php?topic=131566.0

Do you have any idea how much it would cost me to do a wire transfer into your account in France from my account in the US?  I might be interested in this on the USD side.  The BTC side is easy, of course.

imo the cheapest way is using mtgox codes(most trading happen there so there is a need for funds), email unclescrooge if other users did wire he can know the average costs  

[unclescrooge]

Do you have any idea how much it would cost me to do a wire transfer into your account in France from my account in the US?  I might be interested in this on the USD side.  The BTC side is easy, of course.

Well, I won't lie to you, I'm more confortable with mtgox code, until we're registered and have a corporate bank account (hope to have it ready in a month).

Why? Reception cost is (on my side) 0.05% of total (min. 16,5 euros). I have decided that I will take this fee on me (so what I receive is what you get in your balance) but I'm not aware of others fees that you may have.

Is there any assurances that you won't pull another Bitcoinica at us? I'm still wary of borrowing out my coins out, seeing how Roger and co fared in getting their coins back via court cases.

I think you will be more confortable once we're registered as a company and properly licenced to operate our financial services. Licenced means that we will have proper insurance to cover deposit.

I would like to reassure you that we (Myself and I) are dedicated to make the best financial platform for Bitcoin. Our users already saw the tremendous improvments that we brought to make margin trading financially sound and profitable. We have taken security into account from day 1 as you can see on our security page (no automated withdrawal, no bitcoins or mtgox funds stealing possible): https://www.bitfinex.com/pages/security

I'll update you of the legal incorporation of Bitfinex

I thank all the new lenders for the trust they showed by depositing the last few days

[unclescrooge]

Hi everyone,

USD reserves getting low, USD lenders are welcome!

Raphael

[unclescrooge]

Current need updated!

[🏰 TradeFortress 🏰]

Current need updated!

Seems like Credit has changed to Loans. Still the same thing? People won't be able to take the coins OUT of the system right?

[myself]

People won't be able to take the coins OUT of the system right?

borrowers cant make withdrawals from credits, example if you borrow 100 BTC to short you will see short possible 100BTC nothing more

[🏰 TradeFortress 🏰]

People won't be able to take the coins OUT of the system right?

borrowers cant make withdrawals from credits, example if you borrow 100 BTC to short you will see short possible 100BTC nothing more

That's cool, I saw the text change to loans and I wondered if Bitfinex was trying to be BTCJAM