Lender Warnings

What Lenders See Before Contributing

Clear warnings help lenders make informed decisions about risk.

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Warning Levels

🟢 Low Risk (Grades A-B)

✅ Low Risk Loan
- Strong repayment history OR close social connection
- Reasonable loan size

🟡 Moderate Risk (Grades C-D)

⚠️ Moderate Risk
- Limited history or moderate connection
- Consider smaller contribution

🔴 High Risk (Grades E-HR)

🚨 High Risk - Lend with Caution
- First-time borrower OR weak social ties
- Only lend what you can afford to lose
- Expected default rate: >35%

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Risk Flags

Specific warnings lenders might see:

Flag	When Shown
🆕 First Loan	No repayment history
📈 Large Request	Loan >$500 with no history
⚠️ Past Default	Borrower defaulted before
👥 Weak Ties	Minimal social connection

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Best Practices

For Lenders:

• Start with Grade A-B loans

• Diversify across multiple loans

• Only lend to Grade E-HR if you know them

For Borrowers:

• Start small to build Grade A status

• Share with close friends first

• Repay on-time

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Next: Loan Constraints | Back to: Risk Scoring