btcjam.com How do we know the interest we are paid

[funtotry]

I use btcjam quite a bit and am wondering how do we know how much we would make from making an investment. There are many numbers like expected loss, expected APR, APR, and Amount @ rate.
Would the actual paid interest be Amount @ Rate? It says 15btc at 5% for me https://btcjam.com/listings/36802-refinancing:-zencloud-and-zeushash-development

[mishax1]

It looks like that loan is bonded to USD, so that's a USD-USD loan so don't jump to invest your BTC in that unless you are certain that the BTC price is going down in the next 365 days...

[funtotry]

It looks like that loan is bonded to USD, so that's a USD-USD loan so don't jump to invest your BTC in that unless you are certain that the BTC price is going down in the next 365 days...

oh wow thanks for pointing that out. The price will probably sway more than 5% in a year so it just doesn't make sense to invest there. I will not invest here but still I would like an answer to see how much interest is actually paid

[rikkie]

The APR stands for the Annual Percentage Rate. APR is a financial calculation that measures how much interest you receive on yearly (annual) basis if the loan was to be outstanding for a year.

The expected loss is the amount BTCjam expects you to lose as a result of loan defaults, if their algorithm is accurate then if you invest in a large population of similarly risked loans then, on average you will lose the expected loss amount.

The Rate (in the middle where it says Amount @ Rate) is how much interest will be paid as a percentage of the principle. The loan in the OP is currently offering 5%

[funtotry]

The APR stands for the Annual Percentage Rate. APR is a financial calculation that measures how much interest you receive on yearly (annual) basis if the loan was to be outstanding for a year.

The expected loss is the amount BTCjam expects you to lose as a result of loan defaults, if their algorithm is accurate then if you invest in a large population of similarly risked loans then, on average you will lose the expected loss amount.

The Rate (in the middle where it says Amount @ Rate) is how much interest will be paid as a percentage of the principle. The loan in the OP is currently offering 5%

Ok thank you for clearing it up.  So expected loss says 1.64%, so is that roughly the chance of him defaulting?
And if I deposit 1 btc, I should be getting 1.05 btc back in my account.
Thanks for explaining this

[bensam123]

I don't recommend you going on btcjam and loaning other people.

Btcjam is probably the worst place you can loan, this forum is much better(The interest is very low and the loan terms are like a year or something, and people create fake profiles). But anyways it's your choice.

[funtotry]

I don't recommend you going on btcjam and loaning other people.

Btcjam is probably the worst place you can loan, this forum is much better(The interest is very low and the loan terms are like a year or something, and people create fake profiles). But anyways it's your choice.

Other way around. Default rate is MUCH higher at bitcointalk because it isn't tied to any real information and it is more of an official site. Also most loans here are for gamblers..

[bensam123]

I don't recommend you going on btcjam and loaning other people.

Btcjam is probably the worst place you can loan, this forum is much better(The interest is very low and the loan terms are like a year or something, and people create fake profiles). But anyways it's your choice.

Other way around. Default rate is MUCH higher at bitcointalk because it isn't tied to any real information and it is more of an official site. Also most loans here are for gamblers..

Hmm... That's not 100% true. But I have to say that return always come with risks. You might have risks on bitcointalk loaning to people, but your return is much higher.

If you make smart choices on who to loan and who not to loan I don't see why there's a higher default rate here than btcjam.

[funtotry]

I don't recommend you going on btcjam and loaning other people.

Btcjam is probably the worst place you can loan, this forum is much better(The interest is very low and the loan terms are like a year or something, and people create fake profiles). But anyways it's your choice.

Other way around. Default rate is MUCH higher at bitcointalk because it isn't tied to any real information and it is more of an official site. Also most loans here are for gamblers..

Hmm... That's not 100% true. But I have to say that return always come with risks. You might have risks on bitcointalk loaning to people, but your return is much higher.

If you make smart choices on who to loan and who not to loan I don't see why there's a higher default rate here than btcjam.

I agree that the interest rates are higher here, but that's cause they are more unstable and people don't have to tie their personal information to the account. On btcjam also there are ALWAYS loans whereas here I have to wait for people to ask for loans from me in my thread.
Loaning here is much more fun though

[bensam123]

I don't recommend you going on btcjam and loaning other people.

Btcjam is probably the worst place you can loan, this forum is much better(The interest is very low and the loan terms are like a year or something, and people create fake profiles). But anyways it's your choice.

Other way around. Default rate is MUCH higher at bitcointalk because it isn't tied to any real information and it is more of an official site. Also most loans here are for gamblers..

Hmm... That's not 100% true. But I have to say that return always come with risks. You might have risks on bitcointalk loaning to people, but your return is much higher.

If you make smart choices on who to loan and who not to loan I don't see why there's a higher default rate here than btcjam.

I agree that the interest rates are higher here, but that's cause they are more unstable and people don't have to tie their personal information to the account. On btcjam also there are ALWAYS loans whereas here I have to wait for people to ask for loans from me in my thread.
Loaning here is much more fun though

Well, if you go on btcjam there's tons of loans that are 1 year, 6 months etc. whilst on the forum it's only a few days, maximum usually is a month.

And, there's plenty of loaners on this forum, although I have to agree with you some newbie scammers provide us quality entertainment

If you take the right safety precautions loaning to people on this forum and promote it elsewhere(social media?) then I'm sure this forum would be a much better place to lend than btcjam.

[funtotry]

I don't recommend you going on btcjam and loaning other people.

Btcjam is probably the worst place you can loan, this forum is much better(The interest is very low and the loan terms are like a year or something, and people create fake profiles). But anyways it's your choice.

Other way around. Default rate is MUCH higher at bitcointalk because it isn't tied to any real information and it is more of an official site. Also most loans here are for gamblers..

Hmm... That's not 100% true. But I have to say that return always come with risks. You might have risks on bitcointalk loaning to people, but your return is much higher.

If you make smart choices on who to loan and who not to loan I don't see why there's a higher default rate here than btcjam.

I agree that the interest rates are higher here, but that's cause they are more unstable and people don't have to tie their personal information to the account. On btcjam also there are ALWAYS loans whereas here I have to wait for people to ask for loans from me in my thread.
Loaning here is much more fun though

Well, if you go on btcjam there's tons of loans that are 1 year, 6 months etc. whilst on the forum it's only a few days, maximum usually is a month.

And, there's plenty of loaners on this forum, although I have to agree with you some newbie scammers provide us quality entertainment

If you take the right safety precautions loaning to people on this forum and promote it elsewhere(social media?) then I'm sure this forum would be a much better place to lend than btcjam.

Loans are much more personal as well. You PM them, they PM you back, you deal with interest rates, try to figure that out. Btcjam its just a username and they give you money back through the site. Problem is I think the default rate is higher here, but yes its usually 99% of loans are under a month

[mishax1]

The statistics page has zero information on how many loans didn't return..