Interest rates are set by the interest rate curves, which are predefined by the platform.
The interest rate curves are predefined. These are standard, upward-sloping yield curves, meaning the longer the loan term, the higher the APY.
The concrete interest rate for a loan depends on:
The loan term—the longer the loan term, the higher the interest rate.
Trust score—every borrower is automatically trust scored. Every borrower can try to increase his trust score by submitting additional information. The better the trust score, the better the interest rate.
The underlying asset—different assets have different predefined yield curves.
The lender receives the interest rate, as defined via the SmartCredit.io yield curves (standard upward-sloping yield curves).
The borrower pays:
The interest rate for the lender
The platform fee is 0.5% of the loan principal (see the Revenue Model)
The loss-provision fee is accumulated into the Loss-Provision Fund and used in adverse situations