What “LendPace does not hold assets” means for custody and API risk

LendPace does not hold your assets, but exchange lending is not the same as holding your own private keys. Separate the tool, exchange and wallet roles to understand control.

Who controls what?

Role	Control
You	Exchange account access and granting or revoking API authorization
Exchange	Custody, matching, repayments and withdrawals
LendPace	Authorized lending operations and data access through the API

An account in your name is not a self-custody wallet. If an exchange suspends withdrawals or suffers an operational problem, LendPace cannot bypass that restriction.

What restricted permissions achieve

The recommended Bitfinex key disables withdrawals and wallet transfers while retaining necessary reads and funding actions. This narrows permitted operations. A leaked key can still expose records or create unwanted funding activity.

Other exchanges can have broader permission groups. OKX Trade access must not be described as technically limited to lending simply because that is the service’s intended use.

If the tool stops operating

You can still access the exchange and revoke the key, but automation may stop while offers remain outstanding. Active loans follow their existing terms. Verify the exchange state rather than assuming everything was cancelled.

FAQ

Does no withdrawal permission mean no principal risk?

No. It limits that key’s withdrawal ability, not exchange, borrower, price, liquidity or operational risk.

How can I retain practical control?

Periodically access the exchange directly, reconcile balances and loans, review API permissions and maintain account recovery and two-factor authentication.