Overnight Loans: Short-Term Investments

What Are Overnight Loans?

Overnight loans in Webtransfer are short-term P2P loans with a duration until the end of the next business day. This financial tool allows cryptocurrency holders (TON, USDT) to earn income from temporarily idle funds they plan to use shortly.

How Do Overnight Loans Work?

1. You provide your assets as a loan until the end of the next business day.
2. Within the next 24 hours, the funds are returned with accrued interest.
3. The interest rate is flexible and depends on market demand.

Features of Overnight Loans

Flexible Terms

• Duration: Until the end of the next business day after the loan is issued.
• Floating interest rate.
• Option to choose between insured and uninsured loans.

Two Types of Loans

Insured Loans:

• Full insurance coverage of funds.
• 25% commission on profits directed to the insurance pool.

Uninsured Loans:

• No insurance for the issued loan.
• Higher interest rate.
• Reduced commission of 5%.

Factors Influencing Interest Rates

1. Market Demand: Rates increase with higher loan demand.
2. Urgency: The short-term nature of loans can raise rates.
3. Type of Borrowers: Loans are issued to individuals, influencing the rate level.
4. Liquidity: Urgent need for funds can increase rates.

Benefits of Overnight Loans

• Opportunity to earn on temporarily idle funds.
• Quick return on investment.
• Flexible interest rate system.
• Risk level choice through the insurance system.
• Daily interest accrual and fund return.

Important Notes

• The system is in beta testing.
• Interest rates may vary depending on market conditions.
• In cases of low demand, rates may be lower than standard.
• Carefully assess risks when choosing uninsured loans.
• Webtransfer operates on UTC time. This means funds may be returned either in the morning or by the end of the day UTC, depending on when borrowers repay the loans. Therefore, fund returns occur within the business day rather than exactly 24 hours from loan issuance.