Bitcoin loans have fixed dates and interests that both the lender and the borrower agree upon before the loan can be finalized. If the borrower defaults for some reason, the lending websites decide on how to deal with it. Different companies address the situation differently. Defaulting usually carries a penalty. In cases of late payment, lending platforms may penalize the borrower by lowering their trust score, limiting the amount of loan they can take, or prohibiting them from taking loans for a short period of time. Companies may also decide to raise the interest rate after the repayment deadline has passed. In more catastrophic circumstances, such as total loan repayment default, the borrower may forfeit their collateral to the lending websites. Defaulting debtors may also be barred from using the platforms' services. In any case, reputable lending platforms have sufficient reserves to repay their lenders when the loan is due.