How secure is Poloniex lending?

[zenitzz]

I think margin lending in poloniex could be considered as safer because borrower will get 2.5x of his total bitcoin as loan only when he decide to short or long any coin. So even if the price get dumped hard, poloniex will automatically liquidate borrower account to recover the loan amount and also fee poloniex takes on margin trading. I don't think their lending is as risky as in other bitcoin lending platform.

Poloniex will guarantee it, I mean when borrowers borrow funds there guarantee which detained by the poloniex so that the lender will feel safe.

[tyz]

Okay thanks, this is exactly what I was expecting. The only risk you have is that Polo is going offline or got hacked. In my opinion, 15% is not actually much.

The only risk is Polo going down, getting hacked or something related to the exchange. Margin lending s safe, no chance lender can steal your money. However, profitability s questionable, Polo takes 15% from your profits. Very soon u ll figure out you can't make anything significant that way.

[Quickseller]

correct me if i am wrong because i have never used this feature but the way i see it is this way:
- people borrow money on poloniex for trading, right?
- so imagine someone borrows 1BTC from you and promises to return it with profit 1BTC+profit in a week.
- then he buys xyz coin @0.01BTC so he has 100 xyz
- the next couple of days xyz coin gets dumped real hard that the price goes down 50% down to 0.005BTC and we all know this happens so often in altcoins.
- now your 1BTC is turned into 0.5BTC since the borrower can no longer pay you back he leaves poloniex and never comes back to his account ever again

* now what are you going to do?

Polonex will issue a margin call prior to the borrowers account reaching a zero equity status, and will force liquidate a borrowers position before the borrower is anywhere near zero equity. Polo also only allows for margin lending for a few select altcoins with generally high licquidity.

There is the risk that Polonex could get hacked and there is also the risk that Polonex's risk management policies are insufficient to prevent lenders from loosing money in the event of a very quick crash in price of a coin.

[bitcoinfuck]

I think margin lending in poloniex could be considered as safer because borrower will get 2.5x of his total bitcoin as loan only when he decide to short or long any coin. So even if the price get dumped hard, poloniex will automatically liquidate borrower account to recover the loan amount and also fee poloniex takes on margin trading. I don't think their lending is as risky as in other bitcoin lending platform.

Poloniex will guarantee it, I mean when borrowers borrow funds there guarantee which detained by the poloniex so that the lender will feel safe.

so its safe to lend right ?

[BossBee]

Who ever is posting rates under .5% is retarded and this is why the old finance sector goes to such lengths to keep the poor and dumb out. With out the lenders there is no Margin trading. All the lenders have to do is get together and set a minimum standard rate on their loans and their is nothing the borrows can do about it.