I am lending 230 B to @Riperd_Jacks . As usual, I am holding appropriate collateral, which has been contracted back to him for 235.75 B (including 2.5% interest). The loan will expire on 2024-01-11.
The loan has been paid back in full. Thank you for your business!
How do you make sure that they’ll repay the loan with interest?
It’s probably over collateralized.
The collateral needs to cover the loan amount and one month of interest. Depending on what is being used as collateral and how volatile its price is, I can typically offer about 70-90% of the market value as loan amount.
This is also the reason why a certain amount of trust is required even for secured loans. My promise to return the collateral to you has value, but there are (sadly) no in-game mechanisms to enforce this promise.