[OFFICIAL]Bitfinex.com first Bitcoin P2P lending platform for leverage trading

[gigacoiner]

For lending the coins, what kind of interests are typical on the site?  Are a lot of people using these features?

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[Sukrim]

https://www.bitfinex.com/pages/stats

Currency    Flash Return Rate    Average Variable Rate on CFD    Total sum of active swaps
BTC    0.0055%    0.0302%    3,380.38 BTC
LTC    0.0055%    0.0108%    14,399.06 LTC

[Sukrim]

Well it's more than 0 I guess? And yes, going short is dead cheap from a borrower's perspective.

[gigacoiner]

Thanks for the link.  
Is the Flash rate, when somebody signs up and then cancels it right away?

The variable CFD rate of .0302%.  That would be .000302 a day?
Does that mean that if you have 100 BTC that you loan out at .0302%, you'll be making:  .0302 BTC a day or .906 BTC a month?

Thanks,

https://www.bitfinex.com/pages/stats

Currency    Flash Return Rate    Average Variable Rate on CFD    Total sum of active swaps
BTC    0.0055%    0.0302%    3,380.38 BTC
LTC    0.0055%    0.0108%    14,399.06 LTC

[Sukrim]

Just read the page... Flash rate is what everyone gets right now on average, the other number is a more long-term  measurement.

You would pay 10 % fees and you would be very lucky to even lend out a fraction of 100 btc at the moment - but in theory yes, you can earn a modest interest on bitcoin deposits.

[Timetwister]

Is it possible to use "USD Swap total" (USD already lent) as collateral for borrowing BTC?

[Ente]

Is it possible to use "USD Swap total" (USD already lent) as collateral for borrowing BTC?

I'm 90% sure this doesn't work. I think I tried once, some time ago.

Ente

[Timetwister]

Is it possible to use "USD Swap total" (USD already lent) as collateral for borrowing BTC?

I'm 90% sure this doesn't work. I think I tried once, some time ago.

Ente

Good to know, that makes Bitfinex less fragile.

[Sukrim]

Well it's more than 0 I guess? And yes, going short is dead cheap from a borrower's perspective.

IMHO it's less then 0, because the risk greatly outweighs the reward
Rate is less than 2% per year (accumulated).

That is your personal assessment though and you're free to charge more as interest then. Apparently for people holding in total ~3.2k BTC it is already enough.

Since interest gets paid out daily, with reinvesting you'd get 2.02...% per year from 0.0055% per day. In practive that's a bit hard, since even at FRR you're not likely to lend out coins and even if you do, you typically loose a bit for the hours you have to wait until your offer gets re-posted, waits for a borrower etc. - also there are fees.

The "real" rate for me also is different (not 2%), this has to do a lot with lending out BTC if the price goes down quickly which builds demand but increases risk.

[Sukrim]

Same thing again... and no info whatsoever anywhere.

But don't worry, Mr. Giancarlo will tell you soon that they still are very professional and no cent has been lost, ever!

[unclescrooge]

Same thing again... and no info whatsoever anywhere.

But don't worry, Mr. Giancarlo will tell you soon that they still are very professional and no cent has been lost, ever!

Hello everyone,

Swap payment is not the same as swap returns calculation. Swap return are calculated each hour.
Then, normally once per day a task looks at returns pending, and credits it in your account. But actually this task can run more than once, and if 1 hour of return is already pending will credit it on your account. However those extra returns will be deducted from the next day payment.

All in all, from an accounting point of view, it is EXACTELY the same thing: you're not getting any extra returns or missing any returns. NEVER. We try to be competitive, but do not offer free money

Hope this was more clear
Best regards
Raphael

[Sukrim]

Ok, thanks for the clarification!

It's just weird (and slightly annoying) if you get less than 10 USD on the second payment (you'd need to lend out ~80k+ USD for that not to happen probably) and then it isn't caught by Autorenew.

Oh another request (besides the ones a bit back about improving the ledger display) - could we set a wallet in the settings where deposits are being credited? I have my account set to "trader" and now get BTC deposits as well as affiliation payments in the trading wallet, which means I create some extra entries just for periodically shifting the money back to deposit from there. As I don't want to risk loosing my 1:4 leverage, I don't want to set the account type to "deposit".

[Timetwister]

Is Bitfinex a registered company? Where can I find more information?

[Sukrim]

Is Bitfinex a registered company? Where can I find more information?

https://www.bitfinex.com/pages/contact

They are registered as LLC in HongKong afaik, check company registers there for more information (I hope you speak chinese).

Edit:
http://www.cr.gov.hk/docs/wrpt/RNC063_2013.03.04-2013.03.10.pdf
http://www.cr.gov.hk/docs/wrpt/RNC063_2013.05.20-2013.05.26.pdf

Not THAT hard to find, hm? Getting more info on the 2 companies seems to cost money that you have to send to the registry though. (http://www.icris.cr.gov.hk/csci/)
It seems you can pay with credit card though, so if you got a few HKD around for your research, feel free to give it a try (it is actually quite cheap...).

[Timetwister]

How do we know that this company isn't using fractional reserve?

[skovbitcoin]

Raphael, couple of questions if I may ask:

• I asked a little earlier in the thread, how often is it acceptable to poll the API for information?
• You have a policy of the name matching the verified customer name on the wire transfers in. Is this the same for wire withdrawals? I was hoping I might be able to use a FX broker for a preferable exchange rate over my bank?

Thanks

Mark

[Sukrim]

How do we know that this company isn't using fractional reserve?

They could publish or disclose audits. So far they didn't, just like nearly any other company out there dealing with Bitcoins/fiat. If you require more info, just contact them, don't ask on bitcointalk.

[arbitrage001]

How do we know that this company isn't using fractional reserve?

I guess you can't be sure they are not. I am sure they are not but I've been using BFX for a very long time and I mailed back and forth with R back when they had less users (I don't want to waste his time these days unless it's very important) so I have a fair idea of what kind of person he is and so on.

Consider this: A lot of BFX trades (about 40%) are matched on Bitstamp not Bitfinex. Bitstamp requires customers, even big ones like BFX, to actually have the funds to buy (or sell) at the exchange. If Bitfinex really was running a fractional reserve then that would cause problems: If you borrow 100k USD and buy a big Bitstamp ask then that money needs to be at Bitstamp - and you'd see that you could not buy that big ask if it wasn't.

I trust Bitfinex more than my local Swedish bank and therefore I use them. If you don't trust them then don't use them.

BFX do have a viable business model. Judging from the way they raise the commission fee, I am pretty sure they are running a very lucrative and profitable business, as oppose to scammer offering free service or making unrealistic promise to potential investor.


 

[MegaKill]

Hi,

I want to ask;
For margin trading, is "open+close" a position consider 1 single transaction or 2 transactions? for example, I open margin buy then close the position.

I know that for exchange, buy is 1 transaction, sell is 1 transaction, so commission is charge on 2 transactions.

Thanks for answering, I apologize if this has been asked 1000000x before.

[TwinWinNerD]

Hi,

I want to ask;
For margin trading, is "open+close" a position consider 1 single transaction or 2 transactions? for example, I open margin buy then close the position.

I know that for exchange, buy is 1 transaction, sell is 1 transaction, so commission is charge on 2 transactions.

Thanks for answering, I apologize if this has been asked 1000000x before.

I am pretty sure it is:

Exchange = 2
Margin = 1