Some other risks
Please beware of the risks below when using the application:
- As a lender, please don’t set the collateral amount too low compared to the value of the NFT. The borrower may choose to never return the NFT back, but simply take your NFT and sell higher on marketplaces.
- As a lender, please don’t set the price too high. Remember the borrower has to pay the whole price for the Max lending duration upfront. Asking the borrower to pay too much upfront will force them to simply walk away with your offer. Remember no matter what price you set for whatever Max lending duration; you will be earning interest by seconds.
- As a lender, please be mindful to only set long-term Max lending duration if you think your NFT will hold its value through the entire leasing period. Projects that have just launched may seem liquid and valuable but die over 90 days.
- As a borrower, please be mindful of the price per hour you accept to pay. Not all offers are good, and others may offer you a better price per hour. The good thing about our leasing platform is that you as the borrower can always stop borrowing within Max lending duration.