Lending on Skew lets you earn a fixed APR, but every loan carries risk.

‍

Your capital is at risk. Lending is not a deposit. It is not covered by any deposit protection scheme and it is not insured or guaranteed by Skew or by anyone else.

‍

How your loan is protected:

‍

• Borrowers are reviewed: every borrower is reviewed by Skew before its loan is listed. Each loan page shows who the borrower is, the collateral and the terms.
• Collateral: every loan is secured by collateral that the borrower transfers before disbursement. Skew holds it as security agent for the lenders, separate from its own assets and from the borrower's. It is valued regularly against the loan, and each loan shows its maximum loan-to-value.
• Interest set aside: the interest for the whole term is set aside at disbursement and paid into your balance automatically every 24 hours, with no fee.

‍

If a borrower does not repay: Skew, acting for the lenders, can enforce the collateral and apply the proceeds to what is owed. Skew may also choose, at its sole discretion, to repay the lenders with its own funds and take over the claim against the borrower, but it has no obligation to do so.

‍

What can go wrong: a borrower may repay late, in part or not at all, and the value of the collateral may fall below the amount owed. Past repayments are no indication of future ones.

‍

Read the loan agreement and decide whether a loan suits you: the decision to lend, and its risk, are yours. Lend only what you are comfortable with, within your membership's Lending Limit.