> 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/using-the-protocol/lend.md).

# Lend

## How to Lend

1. **Browse offers** on the P2P Lending market.
2. **Evaluate the risk**: check collateral, loan amount, interest, and deadlines.
3. **Choose how much to lend** — minimum 5% of the requested loan amount (max 20 lenders per proposal).
4. **Lend instantly** — funds are transferred immediately to the borrower.
5. **Receive an ERC721 NFT** that represents your loan position.
6. **At maturity:**

   * If repaid: you receive principal + interest.
   * If defaulted: you can claim your share of the collateral.

          → In both cases, the loan NFT is burned.
7. **No fees for lenders** — you keep 100% of the interest.

***

### **Lender Protocol Rules**

* **Minimum 5% per lender**: You must lend at least 5% of the requested amount. If a loan is already 92% funded, you’ll need to lend the full remaining 8%. This avoids leaving unfillable fragments.
* **Fixed interest for all lenders**: All lenders receive the same fixed interest, regardless of when they participated. This creates a competitive dynamic: lend early to secure a spot, or wait and aim for better time-weighted returns.
* **NFTs are transferable**: Your loan position is an NFT. If you sell or transfer it, the repayment goes to the current holder — enabling secondary market activity.