> For the complete documentation index, see [llms.txt](https://docs.smardex.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.smardex.io/p2p-lending/p2p-protocol/overview.md).

# Overview

**P2P Lending** is a decentralized marketplace that empowers individuals to lend or borrow without permission or intermediaries. It restores a true free market for capital, where two parties freely agree on loan terms. Unlike traditional DeFi protocols, P2P Lending removes liquidation risks through fixed-term, fully-collateralized loans.

<div align="center"><figure><img src="/files/6TbCASiUtrfjQ6ee4xWe" alt=""><figcaption></figcaption></figure></div>

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### Key Principles

* Fully on-chain, peer-to-peer lending
* No liquidation: funds are safe until maturity
* Borrower-defined terms: LTV, interest, deadlines
* Fixed interest — no accrual over time
* ERC721 loan representation (NFTs)
* Permissionless, trustless, and transparent