They use 2 of 3 multisig where you have a key, your counterparty has a key, and hodlhodl has a key
That means in all of these loans there is a group of 2 people (your counterparty + hodlhodl) who can pull the rug out from under you and run off with your money
They have the keys to your coins and can move them independently. You do not have the keys to your coins and cannot move them independently. That's precisely what custodial means: someone else has your money instead of you.
Hot take: hodlhodl's lending model is custodial
They use 2 of 3 multisig where you have a key, your counterparty has a key, and hodlhodl has a key
That means in all of these loans there is a group of 2 people (your counterparty + hodlhodl) who can pull the rug out from under you and run off with your money
They have the keys to your coins and can move them independently. You do not have the keys to your coins and cannot move them independently. That's precisely what custodial means: someone else has your money instead of you.