Are you considering activating Lending in your vault? This can provide attractive returns, but it is essential that you are aware of the related risks.
With Lending, your crypto assets are lent to third parties who use them for their own purposes. These purposes may vary from one party to another, which carries risks. To manage those risks as much as possible, we have chosen partners with years of experience in regulated markets.
The lender may not be able to repay the borrowed cryptos or may not be able to meet promised returns. This puts you at risk of losing your lent cryptos (or part of them). This is called credit risk. Within BLOX, we have segments dedicated to specific services: trading, staking and lending. As a result, (potential) losses within one segment do not in principle affect the other segments. For example, if part of the lent coins is lost, this does not affect users who only trade and do not lend out their coins.
Lending at BLOX is not covered by any deposit insurance or guarantee scheme. As a result, you are responsible for any losses that may occur. It is important to understand these risks well before you decide to activate Lending from BLOX. Be aware that you may suffer losses and that these are not covered by any insurance.
Do you want more information about the risks of Lending? Click here.