I also read that elsewhere - you lend out the coins - the borrower gets the ETC... and in my mind should also need to pay you back... like if you rent a camera and don't have it insured... you break it. You get to pay the rental house back as they'll likely have hooks into your credit card etc. Also seem to remember reading that if the borrower goes belly up for whatever reason you also forfeit your coins - in other words, the platform isn't ever going to make you whole.
Thats how I believed it should have been, however all leant etc was given to the borrower because it wasn't under the lenders posession.