Custom Loan Agreements

Definition ∞ Custom loan agreements in digital assets are specialized financial arrangements negotiated directly between parties, offering flexible terms beyond standard lending protocols. These agreements permit tailored collateral, interest rates, and repayment schedules to suit specific borrower and lender requirements. They often involve over-the-counter transactions or bespoke decentralized finance solutions. Such arrangements cater to unique financial needs not met by standardized offerings.
Context ∞ News concerning custom loan agreements often highlights the growing sophistication of the digital asset lending sector and the increasing involvement of institutional participants. These agreements can present different risk profiles compared to algorithmic lending, influencing market stability and regulatory discussions. They represent a significant component of the evolving decentralized finance landscape, providing adaptable financial tools.