[CLOSED] Tomatocage's 1% interest loans, up to 20 BTC (collateral required)

[Tomatocage]

Lending currently on hold. I'll update when I resume loans. Thanks!

I have up to 20 BTC to loan at 1%!!!

No questions asked, and brand new users welcomed, even if you just registered today.

Terms

• You must supply collateral before receiving a loan
• Collateral must be in the form of LTC, XPM, PPC, or mcxFEE shares (mcxNOW.com)
• The amount of collateral will be 15% more than you're borrowing (ie. in order to borrow 10 BTC, you must supply 12 BTC worth of Litecoins at current market value). Likewise for mcxFEE shares.
• All loans are for a period of one week, unless agreed upon otherwise
• All collateral transfers must be from an address that YOU control

Example Request
Amount requested: 1 BTC
Purpose: I don't care (No questions asked, etc)
Term: 1 week
Trusted?: I don't care. You're supplying collateral.

Reply to this thread if you're interested.

Edit: 10/18/2013: I need to scale back the loan pool to 20 BTC due to the diminishing LTC/BTC exchange rate.
Edit: Patch notes 02/01/2014

• Lending resumed
• Interest changed from 0% to 1%
• Added PPC to list of acceptable forms of collateral
• Tx fees on collateral return are now free
• Collateral amount reduced from 120% to 115% of loan amount

[monbux]

Oh wow, a super trusted member creating loans... Good Luck, Will stop by here when I need it!

How come only 1 week max?   

[Kouye]

How come only 1 week max?  

All loans are for a period of one week, unless agreed upon otherwise

[monbux]

How come only 1 week max?  

All loans are for a period of one week, unless agreed upon otherwise

[/list]

I know, Was wondering, for such bit loans, why would he make the default 1 week?

[Tomatocage]

Yeah 1 week is just the default term. If you need a different term length, just throw it out there and we'll go from there.

[monbux]

Yeah 1 week is just the default term. If you need a different term length, just throw it out there and we'll go from there.

Oh ok, Was just wondering why such large loans have such little time

[murraypaul]

(Scratches head)
So I send you 12 BTC worth of coins, and in return you send me 10 BTC worth of coins, and a week later we swap back?
See, to me that isn't you lending me 10 BTC, it is me lending you 2 BTC. (And paying all fees, and having no security.)
Is anyone dumb enough to take you up on it?

[Tomatocage]

(Scratches head)
So I send you 12 BTC worth of coins, and in return you send me 10 BTC worth of coins, and a week later we swap back?
See, to me that isn't you lending me 10 BTC, it is me lending you 2 BTC. (And paying all fees, and having no security.)
Is anyone dumb enough to take you up on it?

What's so dumb about it? In the event of a default, I have 120% of the value I loaned out. If you're long on LTC and don't intend on selling any time soon, but you need an extra 10 BTC infusion, this is a perfect opportunity. These loans are not for those who have nothing to begin with,  nor are they for those who have no intention of paying back. Though I certainly welcome the latter

[murraypaul]

And in the case of no default, you've received an interest free loan of 2 BTC for a week, you can't really lose.
It certainly isn't dumb from your side of the deal.

[Tomatocage]

And in the case of no default, you've received an interest free loan of 2 BTC for a week, you can't really lose.
It certainly isn't dumb from your side of the deal.

I'm giving out interest-free loans, so it's only fair, no?

[murraypaul]

You are receiving interest free loans. It is equivalent to:
You provide me with 10 BTC collateral, and I loan you 12 BTC worth of LTC for a week.

[monbux]

And in the case of no default, you've received an interest free loan of 2 BTC for a week, you can't really lose.
It certainly isn't dumb from your side of the deal.

I'm giving out interest-free loans, so it's only fair, no?

Yes, that is a very smart way to do it, way to go.  Murraypaul, A collateral is always supposed to be worth more than the actual loan.

[Tomatocage]

You are receiving interest free loans. It is equivalent to:
You provide me with 10 BTC collateral, and I loan you 12 BTC worth of LTC for a week.

It sure is a strong deterrent from running off with my coins though, isn't it?

[Kouye]

This thread is 50% educative and 50% trollish, and thus I like it.

As much as I sincerly doubt anyone will use it - although it might prove to be very useful in some rare circumstances, 0% loans need to be praised.
Stunna who offered the same service without the collateral requirement already got scammed for 0.4BTC, it seems.

You cannot blame 0 risk, 0% loans. They can be useful to some people, period.

[C10H15N]

You cannot blame 0 risk, 0% loans.

or a currency exchange with a 20% fee.  I'm watching with interest.   

[malevolent]

What would prevent someone from simply exchanging the LTC to BTC?

[🏰 TradeFortress 🏰]

What would prevent someone from simply exchanging the LTC to BTC?

They may not always want to - for example, if they want to hold a long position on LTC but need BTC.

[TMAN]

Will you take btct shares as collateral?

[zackclark70]

everyone wants to do LTC as collateral since my 5btc loan lol

[Tomatocage]

everyone wants to do LTC as collateral since my 5btc loan lol

Yeah man, you set the high-water mark. So if anybody complains about the terms, you're to blame