> ## Documentation Index
> Fetch the complete documentation index at: https://docs.usmewe.com/llms.txt
> Use this file to discover all available pages before exploring further.

# P2P Lending Overview

> Direct peer-to-peer loans between users

# P2P Lending

P2P (Peer-to-Peer) lending allows users to lend directly to each other with flexible, negotiated terms.

## How It Works

```
┌─────────────┐         ┌─────────────┐
│   LENDER    │         │  BORROWER   │
│             │         │             │
│ Has USDC    │         │ Needs USDC  │
│ Wants yield │         │ Has Trust   │
└─────────────┘         └─────────────┘
       │                       │
       └───────────┬───────────┘
                   ▼
           ┌─────────────┐
           │  P2P LOAN   │
           │  CONTRACT   │
           │             │
           │ • Amount    │
           │ • Duration  │
           │ • Interest  │
           │ • Due Date  │
           └─────────────┘
```

## vs Trust Vault Loans

| Feature     | P2P Loan           | Trust Vault Loan          |
| ----------- | ------------------ | ------------------------- |
| Source      | Individual lenders | Protocol pool             |
| Terms       | Negotiated         | Algorithmic               |
| Rates       | Flexible           | Variable (utilization)    |
| Trust Score | Optional check     | Required                  |
| Risk        | Lender bears 100%  | Insurance Pool covers 80% |

## Creating a Loan Request

<Steps>
  <Step title="Navigate to Credit">
    Go to **Credit** > **Request Loan**
  </Step>

  <Step title="Choose P2P">
    Select "P2P Loan" instead of "Trust Vault"
  </Step>

  <Step title="Set Terms">
    Specify amount, duration, and interest you're willing to pay
  </Step>

  <Step title="Post Request">
    Your request becomes visible to potential lenders
  </Step>
</Steps>

## Funding a Loan

Lenders can browse and fund loan requests:

<Steps>
  <Step title="Browse Requests">
    View open loan requests in the **Credit** > **Lend** tab
  </Step>

  <Step title="Review Borrower">
    Check borrower's Trust Score, history, and reputation
  </Step>

  <Step title="Fund Loan">
    Commit your USDC to fund the loan
  </Step>

  <Step title="Track Repayment">
    Monitor loan status in your portfolio
  </Step>
</Steps>

## Risk Considerations

<Warning>
  P2P loans are NOT covered by the Insurance Pool. Lenders bear 100% of default risk.
</Warning>

### Risk Mitigation

* Review borrower Trust Score before lending
* Start with small amounts to test borrowers
* Diversify across multiple loans
* Prefer borrowers with Guardian endorsements

## Use Cases

<CardGroup cols={2}>
  <Card title="Friend-to-Friend" icon="users">
    Lend to friends with trust, not interest
  </Card>

  <Card title="Higher Yields" icon="chart-line">
    Negotiate rates higher than Trust Vault
  </Card>

  <Card title="Flexible Terms" icon="sliders">
    Custom durations and repayment schedules
  </Card>

  <Card title="Build Reputation" icon="star">
    Successful P2P loans boost Trust Score
  </Card>
</CardGroup>

## API Reference

```bash theme={null}
# Create loan request
curl -X POST "https://api.usmewe.com/v1/loans/p2p/request" \
  -H "Authorization: Bearer YOUR_TOKEN" \
  -d '{"amount": 100, "durationDays": 30, "interestRate": 3}'

# List open requests
curl -X GET "https://api.usmewe.com/v1/loans/p2p/requests" \
  -H "Authorization: Bearer YOUR_TOKEN"

# Fund a loan
curl -X POST "https://api.usmewe.com/v1/loans/p2p/fund/{requestId}" \
  -H "Authorization: Bearer YOUR_TOKEN"
```

<Card title="Full API Docs" icon="code" href="/developers/api-reference/loans">
  Complete P2P lending API reference
</Card>