<prompt> Human: Im planning to use Lending Club. It looks like i could make a fairly steady 9 a year from their website. Am I wrong and if so, why?Edit: Thanks everyone! In regards to liquidity issues, paperwork and taxes, et al, this is play money that I am as close to definitely not needing until the loan term is up as is reasonably determinable. I have a bunch more money in more liquid things, et cetera. Plus, paperwork and taxes are my game. Its the finance stuff that im always unsettled by, however, this seems to be an affirmation of action. Thanks again!Edit2: I put 3,300 in, 12 in tranche B, 63 in C and 25 in D. The following is not legal advice, merely legal information. I am a lawyer so i peruse those terms you always have to agree to before using something. You have 30 days to opt out of arbitration and preserve your right to sue in any court by sending a letter to Lending Club per their agreement and trust agreements which I am doing because I think i would be better off if something big ever happened.As a less important aside, if you like also getting a paper copy of things, all you have to do is send an email to asking for it, also per their agreement.Edit the third: paper copies of the disclosures i mean- section 15a  <response>: I have invested with Lending Club since 2010. I have probably contributed around 4000 total including automatically purchasing new notes when the payments I receive add up. I have had an overall positive experience with it. My rate of return has hovered around 6 to 8 over the years, and the default rate I have experienced is just around what they advertised when I started investing, which was 4 not sure what they warn is the average default now. Like you can probably guess, the higher rate of return notes are those that tend to be more likely to default. I have my own observations based on my experience only of which notes tend not to default and what borrower characteristics to pay special attention to e.g., I like credit card consolidation loans vs. one off expenses like for weddings home repairs, etc.; I also look for long term employment for a borrower first, and then credit utilization. I am not sure you can guarantee 9--you would need to accept a level of risk that I probably I am not comfortable with. But I dont think peer-to-peer lending is an unwise investment if you have an otherwise diversified portfolio. Note: keep in mind that the returns are annualized, meaning you will recoup the interest over the life of the loan 36 months or 60 months, not necessarily over the 1 year. Also, some borrowers will pay off their loans early, thus leaving you with a lower return but all your principal, of course. 