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Author Topic: [EDU] The Rule of "No Collateral, No Loan" - IGNORE AT YOUR OWN RISK!  (Read 87354 times)
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February 03, 2018, 08:04:26 PM

Thanks for man!
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February 19, 2018, 08:49:52 PM
Merited by condoras (3)

I've seen a lot of loans being asked offering domains as collateral. I'd like to add some comments and guidelines about this:

  • Under some conditions, domains can be recovered after being transferred, particularly if it's proven they were stolen, or if there's a copyright infringement.
  • A domain's value is very subjective and changes a lot. Several people ask about what valuation to use. The answer is simple. As said by Vod, collateral must be easily sold. Therefore the valuation to be used must be one that allows the domain to be easily an immediately sold. That is a very low price.
    Maybe it'd be possible to sell the domain for 100x the price on Sedo or similar, after 1 year+ of promoting it, but that's definitely not easily selling it.
  • History of sales normally just list top-priced sales. They're more exceptions than rules. They may be good to give an idea of an optimistic price for the domain after a lot of work, if the right final user is found; but they're definitely not good to set valuations for collateral. What matters is not what price someone paid at some time but what price several people are willing to pay for something at any time.
    If someone sold for $1,000 a year ago but now the highest open, serious offer for it is just $100 then it's not worth more than $100 as collateral.
  • These guidelines seem harsh. You may think it would be better to just sell the domain. And you would be right. The idea is the borrower should never prefer to default and lose the collateral, under no circumstance. If he has to think about it then he should just sell it in the first place. Faking a sale as a loan is not allowed here.
  • These guidelines can apply to art and other goods (physical or digital) whose value is subjective and varies a lot.

TLDR; Domains can be used as collateral if
  • there's no suspicion of copyright infringement,
  • the current and all previous ownership can be proved (especially if the domain is very valuable)
  • and, a very low valuation is used, one that allows an easy, immediate sale

- Some digital wares such as domain names can be considered as long as the user cannot recover it.
I know you mentioned domains, so can we offer our website as collateral? OR Artwork?
Sry, so if I use the domain name as the collateral, how can we evaluate the price? Because i checked the different est domain name, also not the same price some are high, some are low?
Just to get clarify, does domain Name/webhosting will be accepted as collateral?

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March 17, 2018, 09:17:55 AM

Ok, first off I learned from getting reamed a time or two at XDA-Developers years ago to search before you ask - and to inform oneself as much as possible in order to gain the Knowledge and become learned, and other groovy anectdotal givens and Confusciousy stuff blah blah to the point please Kryptotronic....   Ok.

Given the handcuffs have me behind the back and I'm search restricted (?Why that feature?) and I'll be honest and admit I'm easily distracted by links inside posts of threads searched - did I miss the page or two where vehicle titles were covered?  I see the O.P.  laying grounds regarding motorcycles and bigger items, but an actual running vehicle with a Kelly Blue Book value - is the lender (assuming he or she were to accept) in danger or compromised if the title is mailed to them and the automobile somehow secured.

Hold on now eager beavers, bite your smartypants remarks and bear with me - it seems it could feasibly be worked out.  On this note while I am here and asking - are handwritten and/or video acknowledgements of handing over ownership of accounts e.g. accounts, provide any remediation for the lender to have proof of ownership?

I'm sure that it happens, but for those who would play by the rules (deleted a real good one about crossing my heart right then....  Still too fresh in the forums though.) Its just not an asset in any way that can be procured by another legally?

I like to sound intelligent and most of me is half the time....  Forgive the grandstanding, especially if I worded that weirdly....
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April 11, 2018, 04:58:21 PM

This rule should be made one of the major rules on this section as this may help save some of us that may desire to invest into lending program and make more coins from the interest. Many people desire to put in fund into lending services but the fear of losing or been scam  is the major problem some of us could not come in.



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June 17, 2018, 01:15:25 PM

What is not considered collateral?

- Future income.  You can prove you'll make xx coins in the next few days, but nothing forces you to send those coins to pay your debt.

Am I missing something here? Couldn't income be set up to a multisig account requirng an investor's signature and the borrowers' signature. No investor signature, no transfer.

Also what about loans backed by shares/SAFEs/ convertible notes? Or would that go into securites?
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July 20, 2018, 02:28:43 PM

I’m confused about escrows also. Can anybody explain how they work?
An "escrow provider", acts as a middleman (intermediary).
- Read the following relevant threads:

Choose someone from the following lists (except me):

- Recommended bitcointalk escrow services
- ⛓LIST⛓ BitcoinTalk's Escrow Providers: Ranking & Blacklist ☠ Avoid Scammers ☠

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