# Why do we choose to use Bitfinex for lending? Bitfinex's lending platform has been around for an extended period, attesting to its stability and credibility in the market. The platform's earnings are not generated out of thin air but are a result of market supply and demand, facilitated by borrowers. USD Lending Option Bitfinex also provides a lending option in USD, effectively mitigating the risks associated with stablecoin de-pegging. With an average yield ranging between 10-30%, it offers an excellent return when measured in USD. **Safety Mechanisms** To ensure the safety of the lender's principal and interest, Bitfinex employs four robust mechanisms **1.Asset Collateralization** Borrowers are required to collateralize at least 30% of their loan amount, allowing them to borrow up to 100% of their collateral value (3.3x leverage). **2.Asset Usage Limitations** Borrowed assets can only be used within the Bitfinex exchange to trade major cryptocurrencies and cannot be withdrawn for other purposes. This ensures that borrowers focus on arbitrage opportunities within the platform. **3.Automated Liquidation** Bitfinex has an automatic liquidation system in place that forces borrowers to repay their loans in the event of a significant loss. This system activates before the collateral drops below 30%, ensuring that the lender's principal and interest are covered. **4.Bitfinex Guarantee** In cases of extreme market volatility where the platform's automated liquidation process may fail, Bitfinex commits to absorb the losses and compensate lenders for both their principal and interest under reasonable circumstances. Past Performance During Market Crashes Even during the substantial market drop on March 12, 2020, Bitfinex's liquidation mechanism remained unchallenged, safeguarding both borrowers and lenders from potential losses. {% hint style="info" %} The information provided above is collected and compiled by Morphlin based on various publicly available sources. This information is for reference purposes only and does not constitute any form of financial advice or investment guidance. Before making any financial or investment decisions, users should conduct further research and assessment and make decisions on their own accord. Morphlin is not responsible for any losses or damages incurred as a result of using or relying on this information. {% endhint %} --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.morphlin.com/get-started/bitfinex/why-do-we-choose-to-use-bitfinex-for-lending.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.