How to create player-2-player loans

Obligatory Note - technique refers to your personal ability to do something, juxtapose your skill levels which makes it easier to have no technique, like an Omega.


body

I see players making loans to each other, but the situation looks haphazard, no real enforcement, etc? How is this mechanic actually done, or is the mechanic straightforward such as an infallible NPC escrow?


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Be Alpha

No it isn’t infallible and that’s a good thing.

Generally the value of the loan is covered in collateral held by the lender or a trusted third-party. in the event that the borrower doesn’t pay back, the collateral is either sold to cover the loan, or kept by the lender.

There is trust required both ways.

People with a known reputation for honesty often borrow without collateral, and unsecured loans generally have a higher interest as an incentive for lenders.

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Obligatory Note - technique refers to your personal ability to do something, juxtapose your skill levels which makes it easier to have no technique, like an Omega.


Thanks, is there a market to advertise for thise? Or it’s all private interaction?


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Be Alpha

Mostly this forum.

It’s always been the most common place to both ask for a loan and to find opportunities to lend against.

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There is no enforcement. This is why the loans are made in public.

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and its worth noting, if you are looking for a loan, be prepared to be grilled not so much if collateral is available, but if its uncollat even if not a huge amount people will question you, and as potential investors in you they have a right to do so. Just look through the forums and see the number of people who have gotten overly defensive etc and been almost torn apart.
also mystery investors almost never exist, fair bet the ones you see in older threads were just rubbish and the person will come back like “i have a history of uncollat loans you can trust me” doesnt work.
Majority of lenders look for collateral or reputation, and if either are not up to par, you have an uphill battle to get investment.

We are the enforcement.

This player, I believe, is trying to find out what sticking a fork in a wall socket does, through observation only?

Here’s how it worked when I borrowed 20 billion recently.

I had collateral, 280 Vexor Navy Issue (at the time, a 69m buy order, 74m sell order ship). Both parties agreed that these ships were worth 20 billion or more.

I contracted the 280 VNIs on private contract to the lender for 20 billion.

We had an agreement (not enforceable by any means other than public shaming) that after ~30 days, the lender would contract the ships back to me for the sum of 20.44 billion and that I would accept the contract.

Both of us could have acted dishonestly (e.g. if the ships were worth 28b at the end of the loan period the lender could have said ‘haha’, likewise if they were worth 12b I could have).

However we both acted honestly, and the second transaction occurred and is documented upon the forums.

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