A few weeks ago we outlined the possibility of acting as a escrow agent for steemit P2PLoans . The main idea is to give out loans to steemians who would use their account´s reputation as collateral, the higher the reputation of an user the lower the risk for investors.
If a borrower fails to pay the loan or tries to scam other investors he could suffer from flagging, thus losing its account future payouts. In essence the risk of misbehaving is greater than stealing.
Luckily for us @kenny-crane (62) has volunteered to try out the system with a small loan, here is the application form filled out by the user:
Description: Test Loan to try out the system and be involved in the SteemFund project.
What funds would be used for: I may just let them sit in my account on steemit, or maybe I will power up the steem so I can increase my voting power a little, then buy steem to make the payments, or just do one power down for repayment which will more than cover it.
Amount of loan: 600 steem.
Duration of Loan: 3 months.
Annual APR: 20%.
Since I do not have a python script set up to automate payouts and this is the first ever P2P lending on the platform we would like to keep things simple, so here are the rules for the investors who wish to give this a try:
1.- We would be looking for a maximum of 10 investors for this loan, so if you wish to invest send a minimum of 60 steem to @steemfund with the memo "kenny-crane Loan 1"
2.- This loan will pay 20% direct APR, which means that in 3 months a total of 630 Steem will be paid back to investors in 3 monthly installments of 210 Steem. The money will be sent to @steemfund and then redistributed to investors.
3.- If the target of 600 Steem is not reach we would be returning the Steem to the investors.
4.- If any of the monthly payment is delayed a fee of 0.05% of the overdue amount will be charged per day.
5.- If the borrower misses any of the monthly installments by more than 60 days his account will be automatically auto-flagged by @steemfund.
6.- Steemfund acts an intermediary amongst investors and borrowers, we take no responsibility for the actions of the borrower.
7.- No fees will be charged for the escrow service to the investors or the borrower.
Besides the loan we really want to test out this new concept, if you have any comments regarding the system or if you are a developer and want to contribute either with a payment script or a GUI for the project, please contact me on steemit.chat
Regards,
@chitty