Offerbook is a peer-to-peer lending protocol on Solana where users borrow or lend USDC against onchain collateral. This page covers the risk model: what types of risk Offerbook removes by design, what types of risk remain, and the specific considerations for borrowers and lenders. Offerbook is a fully permissionless protocol. Anyone can participate: both borrowers and lenders publish offers with their own terms, expressing their intentions openly without restrictions or approval. There are no price oracles, no price-based liquidations, and no intermediaries. This openness means that risk evaluation is the responsibility of each user. Offerbook removes price-based liquidation risk, but does not remove market risk.Documentation Index
Fetch the complete documentation index at: https://docs.jup.ag/llms.txt
Use this file to discover all available pages before exploring further.
What Offerbook Removes
Price-based liquidation risk
Collateral is never liquidated due to market price movements during the loan. Even if the collateral loses 90% of its value mid-loan, nothing happens until maturity.
Oracle risk
Offerbook does not rely on price oracles for loan execution. No risk of oracle manipulation, stale price feeds, or oracle downtime affecting your loan.
Intraloan volatility risk
Price swings during the loan duration do not trigger margin calls, adjustments, or forced closures. Loan terms are immutable once the loan starts.
What Remains
Collateral price uncertainty
The value of the collateral at maturity may be higher or lower than at loan creation. This risk exists for both sides.
Opportunity cost
Collateral is locked for the full loan duration. It cannot be used, traded, or withdrawn until the loan is resolved, regardless of market opportunities.
Counterparty-style exposure
Lenders are exposed to the quality and price trajectory of the collateral asset they accept. If the collateral is illiquid or volatile, the lender carries that risk.
Risk for Borrowers
If you do not repay by maturity, the lender can claim your entire collateral at any moment by signing a transaction. While you can technically still repay until the lender claims, do not rely on this window.
- Repayment timing is your responsibility. There are no automated reminders from the protocol. Use the calendar reminder added at offer acceptance, which fires 2 hours before maturity.
- Full interest is always owed, regardless of when you repay. Early repayment does not reduce the interest amount or fees.
- Collateral is locked for the full loan duration. You cannot access it until the loan is resolved, even if you find a better opportunity elsewhere.
- The collateral transfer is not automatic. If the lender does not claim immediately after maturity, the loan stays open and you can still repay. But this is at the lender’s discretion.
- Network congestion or transaction failures at maturity can prevent you from repaying in time. Plan your repayment with a margin to account for potential delays.
Risk for Lenders
Key risk factors:- Higher LTV (Loan-to-Value, the ratio between borrowed USDC and collateral value) increases the risk that collateral may not cover the lent amount if the borrower defaults.
- Collateral liquidity matters. If the collateral asset has low trading volume, selling it after claiming may result in slippage or losses.
- Claiming is manual. After maturity, if the borrower has not repaid, you must sign a transaction to receive the collateral. The transfer is not automatic. Claiming triggers the collateral transfer.
- A 0.1% fee is deducted from the collateral at transfer (no fee on NFT/RWA).
- Receiving the collateral token, not USDC. If the borrower defaults, you receive the collateral itself. Selling it to recover USDC is a separate action, exposed to market conditions at that moment.
- Evaluate the collateral asset’s volatility, market depth, and fundamentals before accepting an offer.
Other Risks to Consider
Smart Contract Risk
Offerbook is a smart contract protocol on Solana. As with any onchain protocol, there is residual risk that a bug, vulnerability, or exploit could affect funds. Offerbook has been audited (see below), but no audit guarantees the absence of all risks.Solana Network Risk
Offerbook depends on the Solana network. Network downtime, congestion, or fee spikes can affect your ability to:- Repay a loan before maturity
- Claim collateral after maturity
- Create or accept offers
- Withdraw from your escrow
Asset-Specific Risk
The collateral and lent assets are subject to their own risks (token contract risk, deauthorization, freezing, depegging for stablecoins, etc.). Verify the assets you interact with.Yield-Bearing Collateral
If your collateral is a yield-bearing token (such as a liquid staking token), the yield mechanics can affect the asset during the loan:- Yield that accrues directly in the token value will grow during the loan.
- Yield that requires manual claiming may not be accessible while the collateral is locked.
Key Principle
Offerbook shifts risk management from automated, price-based systems to user-defined, time-based terms. Both borrowers and lenders must evaluate their exposure before committing to a loan. There is no fallback if you misjudge the collateral, the duration, or the timing.