Lending terms: Offers, Loans, Transactions
Offers are proposals from lenders who wish to lend out their funds to margin traders. When an offer is still live (i.e. not taken by any trader), the funds remain still in the lender's balance.
This offers page shows all loan offers created from your Liquid account.
The Market Offers tab shows all loan offers currently available on the platform for a chosen currency. In the screenshot below, we're looking at BTC loan offers.
All offers for one currency on Liquid are sorted according to their daily interest rate, from best (lowest rate) to worst (highest rate).
Offers will be taken up by traders in this order, from lowest rate to highest rate. For example in the screenshot above, a trader who needs to borrow $2,000 will take up the 1st offer for $1,634.409 at 0.03% daily rate, then the 2nd, 3rd, and 4th offers for respectively $1.2 at 0.031%, $140.2 at 0.032%, and $224.191 at 0.036% daily rate. The remainder of the 4th offer will then become the best offer on the market.
When an offer is taken, it becomes a loan and is displayed under Loans tab. The amount of this offer is also deducted from lender's balance.
Status of a loan can be:
- opened: loan is being used by a trader (borrower).
- closed: loan has been paid back to the lender.
Check the box ‘Auto Re-loan’ if you want the loan to become a loan offer again once it is paid back to you. Uncheck the box if you want the loan to simply return to your balance instead.
All loan-related transactions can be viewed under the Transactions tab.
Interest ("Interest Transfer") is collected from the borrower and credited to the lender accordingly:
- Once when the loan offer becomes a loan, as first interest,
- Once daily at 2200 UTC for as long as the loan stays in "opened" status.
An "Interest Payment Fee" of 50% is collected by Liquid from the lender whenever Interest Transfer is credited. The numbers shown in Gross Amount in the screenshot above are rounded up to 3 decimals.