Note: Even though wallets display Bitcoin transaction fees for lenders, lenders don't pay Bitcoin transaction fees for the loan transaction/initiation. Only if lenders need to claim Ordinals due to a default, they pay for Bitcoin transaction fees.
How can I lend Bitcoin and earn yield?
Choose a Collection: Pick from collections on the Lend page.
Set and Confirm Offer: Decide your lending amount. To increase the chance of your loan getting accepted, try to beat the current best offer.
The higher your offer, the higher the offer will be displayed to Borrowers.Pick your LTV: You can toggle between 0%-100%, with the suggested LTV automatically set.
Wait for Acceptance: Once a borrower picks your offer, you'll get a notification on the app, as well as email or Telegram according to your settings.
Approve the Loan: Go to your Portfolio page and confirm the loan under "Pending" and sign in your wallet. The loan will start once you sign the transaction and it is confirmed.
How do I cancel my offer?
Navigate to Portfolio: Open your Portfolio page where all your active loan offers are listed.
Find Your Offer: Look for the offer you wish to cancel under the section labeled "Loan Offers" or “Pending Signature.”
Cancel the Offer: Click on the "X" button next to the offer.
Confirm: Confirm the cancellation.
Note: You can cancel your offer anytime before the loan starts. Once the loan is initiated, you can no longer cancel it.
What happens if the borrower doesn't repay?
If the borrower fails to repay, the loan defaults. You can then claim the collateral Ordinal, while the borrower keeps the borrowed Bitcoin.
You can claim the Ordinal used as collateral on the Portfolio page after the loan expires.
How to claim the Ordinal
Go to your Portfolio page.
Locate your defaulted loan under the section "Lending".
Once the loan defaulted, click "Unlock" and choose your desired fee rate (Low, Medium, High) or select your custom fee rate by clicking on the pencil in the top right, to set your desired fee amount.
Click "Unlock".
Confirm and sign the transaction in your wallet.
If you want to speed up the unlocking transaction, have a look here: How to speed up a transaction (CPFP).
Note: Once the claim transaction is confirmed, your Ordinal will return to your wallet.
Where can I find my previous loans?
You can find your loan history in the settings page under "Loan History".
There you will find all loans you have previously completed including the collection name, collateral, start data, end date, duration, type, amount, interest rate, and actual interest.
If you want to find your loan history from version 0.2, head to https://legacy.liquidium.fi/settings/loan-history, connect your wallet, and you will see your loan history for loans before v0.3.
Note: Loan histories for v0.2 and v0.3 are separated, meaning if you export the history from v0.2 it will only show recent loans from v0.2 and if you export the history from v0.3 it will only show recent loans from v0.3.
What is a rebuild?
If one or multiple UTXOs that were allocated for the loan were being spent before the loan started, the lender needs to rebuild the loan and the borrower must sign the transaction again. The lender should wait for the borrower to sign again. Once the borrower signs, the loan starts.
What if a borrower cancels the loan?
If a borrower accepts a loan but the loan doesn't start due to the absence of a counter-signature from the lender, the borrower has the option to cancel the loan. If the borrower cancels the loan before it starts, the loan offer will be canceled and no funds will be moved. Additionally, no bitcoin transaction fees are paid, since the loan only begins when both the borrower accepts and the lender counter-signs to start the loan.
What if another lender is faster?
If the best three offers by three different lenders on a collection are within a range of 2% difference in loan amount, the borrower will be prompted to accept all three best offers. In this case, all three lenders are notified that their offer has been accepted. The first lender to counter-sign and start the loan will be the one who gets the loan. The other two lenders, who were slower, will receive a notification saying 'Loan Moved Back To Active,' indicating that their loan offer has been moved back to the active offer state. The offer is available to be accepted by another borrower again if this happens, so no extra action is required by the lender. As a lender, it’s important to be quick with counter-signatures in order to convert your loan offers into actual loans.