What is P2P Lending?

What is P2P Lending?

P2P Lending lets Crypto.com Exchange users lend their virtual assets directly to fellow users while determining their own interest rate. For borrowers, this allows them to take up loans at dynamic market rates.

Lenders can earn interest on their holdings, while borrowers are able to boost their liquidity and benefit from lower interest rates.

P2P Lending complements the existing Crypto.com Lending service, giving users greater flexibility when it comes to taking up cryptocurrency loans.

What are the key differences between P2P Lending and Crypto.com Lending?

Here are the main differences between P2P Lending and Crypto.com Lending:

What qualifications do I need to meet to use P2P Lending?

Users in these jurisdictions will not be able to use P2P Lending at this time.

What crypto assets are supported on P2P Lending?

P2P Lending and Crypto.com Lending support the same crypto assets. Please refer to this page for more details and the full list of assets.

How do I loan out my virtual assets?

1. Any Crypto.com Exchange user can be a lender. From your Dashboard, go to the P2P Lending page from the Lending tab on the left navigation panel.

2. In the Overview tab, click Lend. Select a token to view the interest rates that users have currently set for that particular token. Once you are ready to loan out your assets, click Lend Cryptos.

   

3. A pop-up window will appear. Input the following details to set up your lending order:

   1. Lend Amount - This must fall within your available balance and is subject to a minimum value of USD 100. The maximum amount you can lend varies according to account type. Refer to this page for more information.

   2. Term Length - Choose between 7, 30, 90, or 120 days

   3. Daily Interest Rate - Input a rate between 0% and 2%. The Optimal Rate is displayed as a guide

   4. Enable Auto-Lend - Toggle this on to automatically re-lend your original Lend Amount once your chosen term is completed

      1. If you toggle this on, assign an expiry date for when this loan would expire and be removed from the Lending Matching Platform.

         

4. Tap Continue after you have viewed your estimated interest and checked that all details are accurate. You will then be directed to the Lend Confirmation screen. This lets you review all the information you have entered one final time. Once you are ready, read the Terms and Conditions and click Confirm Lend.

5. After tapping Confirm Lend, you will receive a notification to indicate that your lending order has been submitted., All lending orders can be found in the P2P Lending menu’s Lend Record tab.

Where can I check my history of lending orders?

1. To view your existing lending orders, head to the P2P Lending menu’s Lend Record tab. You can then cycle between three sub-tabs to see:

   1. Open Order - All active lending orders in the Lending Matching Platform

   2. Unsettled - All lending orders that are not repaid or partially repaid

   3. Settled - All lending orders that have been fully repaid

2. Lending Order Statuses:

   1. Filled - Order has been fully taken up. Can be either settled or unsettled.

   2. Partial - Order has been partially taken up. Can be settled or unsettled.

   3. Active - Order has not been taken up on the Lending Matching Platform yet

   4. Cancelled - Order that is cancelled

   5. Rejected - Order that has been rejected (E.g. interest rates no longer exist)

   6. Expired - Order that has expired

How do I change an order’s Auto-Lend status and expiry date?

1. Head to the P2P Lending menu’s Lend Record tab. Select a lending order in the Open Order sub-tab and toggle the Auto-Lend status on or off.

• If Auto-Lend is disabled: Click on your desired lending order. Then, enable Auto- Lend by toggling the button on.. Lastly, a pop-up window will appear. Click Confirm to Enable once you are ready.

• If Auto-Lend is enabled:. Click on your desired lending order. Then, disable Auto-Lend by toggling the button off. Lastly, a pop-up window will appear. Click Confirm to Disable once you are ready.

2. To edit your lending order’s Auto-Lend Expiry Date: Click on your desired lending order. Then, click the edit button next to your Auto-Lend’s expiry date. Thereafter, select a new expiry date and click Continue. Once you are ready, click Confirm in the following menu.

How do I calculate the interest on my lending orders (as a lender)?

Your interest depend on the following factors:

• Amount Lent

• Daily Interest Rate

• Loan Tenure

• CRO Staked (The higher your CRO stake, the higher the discount for service fees)

Estimated Interest: Amount Lent x Daily Interest Rate x Loan Tenure

Simple interest is used to calculate the daily interest that you receive. Your interest payout will be disbursed once the borrower has repaid partially or in full (calculated on a pro-rata basis in case of a partial repayment). A fixed charge is deducted from the interest as a fee.

This fixed fee depends on the amount of CRO you have staked.

For example:

• Lent Token: CRO

• Amount Lent: 10,000

• Loan Tenure: 7 days

• Daily Interest Rate: 0.05%

• Auto-Lend: Yes

• Flat Fee Charged: 18% of interest (40,000 CRO staked)

How do I borrow virtual assets?

1. To borrow assets with P2P Lending, go to the P2P Lending page from your Dashboard under the Lending tab on the left navigation panel

2. In the Overview tab, click Borrow. In this menu, click Take Out a New Loan. Please note that a maximum of three P2P Loans can be taken up at any one time. Also, you are required to maintain an LTV ratio of ≤ 50%. Refer to this page for more information regarding LTV and Loan Health.

3. After clicking Take Out a New Loan, a pop-up window will appear. Input the following details to set up your loan request:

• Loan Amount - This must fall within the Available Entitlement as set out in the pop-up window.

• Estimated Collateral Amount - This is the collateral amount for your loan, and must fall within your available balance.

• Initial Loan-to-Value (LTV) - The initial ratio of your Loan Amount to the value of your collateral. Refer to this page for more information.

• Term Length - The duration of your loan

Important note: a borrower will not be able to top-up collateral. This means, if there is any price movement of the relevant virtual assets, your LTV ratio may drop, triggering liquidation. Forced Liquidation will be triggered when your LTV ratio reaches 85%, and we have the right to charge liquidation fees (currently at 0.16% of the remaining amount of loan). As such, it is important that you monitor your LTV ratio at all times, and in order to prevent forced liquidation, you should repay the whole or a sufficient part of the loan (as the case may be) to improve your LTV ratio.

4. Click Continue after you have ensured that all details are accurate. You will then be directed to the Loan Details screen. For compliance reasons, you are required to provide the following information:

1. Funding Source for Collateral

2. Intended Use for Loan

Click Continue once you have provided both pieces of information

5. You will then be directed to the Loan Confirmation screen. This lets you review all the information you have entered one final time. Once you are ready, read the Terms and Conditions and click Confirm to Borrow.

6. After clicking Confirm to Borrow, you will receive a notification to indicate that your loan request has been submitted and confirmed. All loans taken up can be found in the P2P Lending menu’s Borrow Record tab.

How do I view my existing loans?

1. To view your existing P2P loans, access the P2P Lending page in your Dashboard under the Lending tab on the left navigation panel. Then, click the Borrow Record sub-tab. You can access five menus thereafter:

   1. Loan History

   2. Interest

   3. Margin Call

   4. Liquidation

   5. Repayment

2. Within the Loan History menu, you are able to view each loan’s:

   1. Borrow Time

   2. Loan ID

   3. Loan Principal

   4. Collateral

   5. Term Length

   6. Daily Interest Rate

   7. Status

   8. When you expand each loan record, you are also able to view:

      1. Expiry Time

      2. APR

      3. Daily Interest Rate

      4. Accrued Interest

      5. Outstanding Debt

      6. Initial LTV

      7. Margin Call LTV

      8. Liquidation LTV

How do I repay my loans?

1. While your loan is still active, you can make a repayment at any time without incurring penalties. To do so, access the P2P Lending page in your Dashboard under the Lending tab on the left navigation panel. Then, click the Loans tab.

2. Select the loan that you would like to repay, and click Repay Now.

3. To view your full repayment history, head to the Repayment sub-tab under Borrow Record in the P2P Lending page.. You will be able to see the following details for each repaid loan:

1. Repayment Time

2. Loan ID

3. Total Repayment

4. Outstanding Debt

5. Repayment Source

6. Status

How do I calculate the interest for my loan (as a borrower)?

The interest for your loan depends on the following:

• Amount Lent

• Daily Interest Rate

• Loan Tenure

• CRO Staked (the higher your CRO stake, the higher the discount for service fee)

Outstanding Balance = Loan Principal Unpaid + Accrued Interest Unpaid

For example,

• Token to be borrowed: CRO

• Amount Borrowed: 10,000

• Loan Tenure: 7 days

• Daily Interest Rate: 0.0515%

• CRO Staked: 40,000

• LTV: 25%

• Flat Fee: 18% of interest (40,000 CRO staked)