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RE: How to earn passive income from lending your Bitcoin on Poloniex
No, you will always get paid the interest you are owed. Poloniex and the other exchanges that support this implement margin calls, meaning that if a borrower suffers large losses they will be forced by the exchange to close their position and repay loans before they become in danger of defaulting. A default is technically possible if market conditions are so extreme that the built-in safeguards can't close out a position fast enough, but the chances of that happening are extremely low. In all the many months I've been lending, there has never been a single default.