Frequently Asked Questions

Q: Can I extend my loan? A: No, once the loan term has expired, the lender will have to initialise another pool. Q: As a lender, can I adjust my rates? A: You can adjust rates for new loans, but existing loans maintain their original terms. Q: How does Lends ensure fair pricing? A: Our platform allows market-driven pricing, with lenders setting their own competitive terms.

Q: What happens if I default on my loan? A: Defaulting is treated as a strategic option. You forfeit your collateral but keep the borrowed funds. Q: How do I create a lending pool? A: Deposit tokens into your account, set your parameters like APR and LTV ratio, and then launch your pool. Q: Can I have multiple lending pools with different terms? A: Yes, you can create multiple pools with varying terms to attract a wider range of borrowers. Q: What types of collateral can be used? A: The platform supports various collateral tokens, which you can specify when setting up your lending pool. Q: How do I monitor my account and loans? A: You can view your lent assets, open orders, and counterparties on your account page, and manage your loans and adjust parameters as needed. Q: Is there a risk of forced liquidation? A: No, Lends does not enforce forced liquidations. Borrowers have the flexibility to choose their repayment strategy. Q: How are repayment deadlines handled? A: Both parties know exactly when repayment is due, eliminating guesswork and ensuring clarity. Q: What if the market value of the collateral drops? A: Our approach helps stabilize token value during market downturns, benefiting the entire ecosystem. Q: Can lenders use defaults strategically? A: Yes, lenders can use defaults to acquire desired assets at predetermined rates, effectively using Lends as a limit order system.

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