<p>The rate is a daily interest rate. </p>

<p>The duration is a maximum duration - the person who borrows the bitcoin can repay it at any time, but must be prepared to repay the loan by the end of the duration, or the exchange will liquidate their altcoins to recover the bitcoin and automatically repay the loan. The profit you will get from each loan will be (daily interest) * (actual duration of the loan).  </p>

<p>The effect you are observing is that of people rapidly borrowing and repaying the loans. If a borrower gets a loan at a high percent interest rate, and a short time later a lower interest offer becomes available, they have an incentive to repay the high interest loan and pick up the new loan at a lower interest. There are bots which manage this process automatically for traders, contributing to the rapid borrowing and payback cycle you have observed.</p>

CC BY-SA 3.0
2017-05-05T15:52:20.423Z
so what happens if 1 person borrows my loan for 3 hours. Do I get the full loan amount or only 3 hours worth of the total daily value? And once he repays back and someone else borrows. Does that mean I get an additional return on top of my requested one?
Patoshi パトシ
CC BY-SA 3.0
2017-05-05T15:55:19.060Z
You will receive interest at the daily rate, but only for the actual duration of the loan. If you loan 1 bitcoin out at .1% daily rate, but the borrower repays you after three hours, you will receive (1 * .001 * 3 / 24) in profit, which calculates out to .000125 bitcoin. If they kept the loan for the full two days, you would receive (1 * .001 * 2), or .002 bitcoin in interest.
brandondoge
CC BY-SA 3.0
2017-05-05T20:21:40.567Z
ok i see. so locking your loan in for 2 days at a high rate is actually not worth it then? What is a good % loan offer that usually gets filled all the time?
Patoshi パトシ
CC BY-SA 3.0
2017-05-05T15:49:28.623Z
2017-05-05T15:49:28.623Z
brandondoge
<p>I guess the rate base on daily, and 2 days mean to lock down for 2 day. so you have chance to cancel, or change the higher rate some how.</p>

<p><strong>Rate: The daily interest rate you are offering your funds at.</strong></p>

<p><a href="https://poloniex.com/support/aboutMarginTrading/" rel="nofollow noreferrer">here is the link to explain in more detail officially</a></p>

CC BY-SA 3.0
2017-05-05T01:57:42.530Z
2017-05-05T01:57:42.530Z
temple
<p>I just learned about Bitcoin loaning as seen below and tried it a few times. I'm not too clear on the earnings.</p>

<p>Does it mean you can loan your Bitcoin for .0988% return every 2 days? But when I check my loan history, it seems like the loan gets returned to you multiple times a day and it gets loaned out again. Does this mean every time someone that borrows from you gets charged .0988% ? So what is the 2 days for then?</p>

<p><a href="https://i.sstatic.net/SSFZD.jpg" rel="nofollow noreferrer"><img src="https://i.sstatic.net/SSFZD.jpg" alt="enter image description here"></a></p>

<exchanges>
How does Poloniex Bitcoin loaning work?
Patoshi パトシ
# How does Poloniex Bitcoin loaning work?

(Asked by: username_0 on 2017-04-26)

I just learned about Bitcoin loaning as seen below and tried it a few times. I'm not too clear on the earnings.

Does it mean you can loan your Bitcoin for .0988% return every 2 days? But when I check my loan history, it seems like the loan gets returned to you multiple times a day and it gets loaned out again. Does this mean every time someone that borrows from you gets charged .0988% ? So what is the 2 days for then?

[![enter image description here](https://i.sstatic.net/SSFZD.jpg)](https://i.sstatic.net/SSFZD.jpg)

**Tags:** exchanges


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## 2 answers

### Answer by username_1 on 2017-05-05. Score: 1 | Accepted answer

The rate is a daily interest rate.

The duration is a maximum duration - the person who borrows the bitcoin can repay it at any time, but must be prepared to repay the loan by the end of the duration, or the exchange will liquidate their altcoins to recover the bitcoin and automatically repay the loan. The profit you will get from each loan will be (daily interest) \* (actual duration of the loan).

The effect you are observing is that of people rapidly borrowing and repaying the loans. If a borrower gets a loan at a high percent interest rate, and a short time later a lower interest offer becomes available, they have an incentive to repay the high interest loan and pick up the new loan at a lower interest. There are bots which manage this process automatically for traders, contributing to the rapid borrowing and payback cycle you have observed.

> **Comments:**
> **username_0**: so what happens if 1 person borrows my loan for 3 hours. Do I get the full loan amount or only 3 hours worth of the total daily value? And once he repays back and someone else borrows. Does that mean I get an additional return on top of my requested one?  
> **username_1**: You will receive interest at the daily rate, but only for the actual duration of the loan. If you loan 1 bitcoin out at .1% daily rate, but the borrower repays you after three hours, you will receive (1 * .001 * 3 / 24) in profit, which calculates out to .000125 bitcoin. If they kept the loan for the full two days, you would receive (1 * .001 * 2), or .002 bitcoin in interest.  
> **username_0**: ok i see. so locking your loan in for 2 days at a high rate is actually not worth it then? What is a good % loan offer that usually gets filled all the time?  

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### Answer by username_2 on 2017-05-05. Score: 1

I guess the rate base on daily, and 2 days mean to lock down for 2 day. so you have chance to cancel, or change the higher rate some how.

**Rate: The daily interest rate you are offering your funds at.**

[here is the link to explain in more detail officially](https://poloniex.com/support/aboutMarginTrading/)


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