diff --git a/common/bet.ts b/common/bet.ts
index 993a2fac..75aab89d 100644
--- a/common/bet.ts
+++ b/common/bet.ts
@@ -34,5 +34,3 @@ export type NumericBet = Bet & {
   allOutcomeShares: { [outcome: string]: number }
   allBetAmounts: { [outcome: string]: number }
 }
-
-export const MAX_LOAN_PER_CONTRACT = 20
diff --git a/common/new-bet.ts b/common/new-bet.ts
index ba799624..e62c316f 100644
--- a/common/new-bet.ts
+++ b/common/new-bet.ts
@@ -1,6 +1,4 @@
-import { sumBy } from 'lodash'
-
-import { Bet, MAX_LOAN_PER_CONTRACT, NumericBet } from './bet'
+import { Bet, NumericBet } from './bet'
 import {
   calculateDpmShares,
   getDpmProbability,
@@ -32,8 +30,7 @@ export type BetInfo = {
 export const getNewBinaryCpmmBetInfo = (
   outcome: 'YES' | 'NO',
   amount: number,
-  contract: CPMMBinaryContract,
-  loanAmount: number
+  contract: CPMMBinaryContract
 ) => {
   const { shares, newPool, newP, fees } = calculateCpmmPurchase(
     contract,
@@ -51,7 +48,7 @@ export const getNewBinaryCpmmBetInfo = (
     shares,
     outcome,
     fees,
-    loanAmount,
+    loanAmount: 0,
     probBefore,
     probAfter,
     createdTime: Date.now(),
@@ -66,8 +63,7 @@ export const getNewBinaryCpmmBetInfo = (
 export const getNewBinaryDpmBetInfo = (
   outcome: 'YES' | 'NO',
   amount: number,
-  contract: DPMBinaryContract,
-  loanAmount: number
+  contract: DPMBinaryContract
 ) => {
   const { YES: yesPool, NO: noPool } = contract.pool
 
@@ -98,7 +94,7 @@ export const getNewBinaryDpmBetInfo = (
   const newBet: CandidateBet<Bet> = {
     contractId: contract.id,
     amount,
-    loanAmount,
+    loanAmount: 0,
     shares,
     outcome,
     probBefore,
@@ -113,8 +109,7 @@ export const getNewBinaryDpmBetInfo = (
 export const getNewMultiBetInfo = (
   outcome: string,
   amount: number,
-  contract: FreeResponseContract,
-  loanAmount: number
+  contract: FreeResponseContract
 ) => {
   const { pool, totalShares, totalBets } = contract
 
@@ -135,7 +130,7 @@ export const getNewMultiBetInfo = (
   const newBet: CandidateBet<Bet> = {
     contractId: contract.id,
     amount,
-    loanAmount,
+    loanAmount: 0,
     shares,
     outcome,
     probBefore,
@@ -189,13 +184,3 @@ export const getNumericBetsInfo = (
 
   return { newBet, newPool, newTotalShares, newTotalBets }
 }
-
-export const getLoanAmount = (yourBets: Bet[], newBetAmount: number) => {
-  const openBets = yourBets.filter((bet) => !bet.isSold && !bet.sale)
-  const prevLoanAmount = sumBy(openBets, (bet) => bet.loanAmount ?? 0)
-  const loanAmount = Math.min(
-    newBetAmount,
-    MAX_LOAN_PER_CONTRACT - prevLoanAmount
-  )
-  return loanAmount
-}
diff --git a/functions/src/create-answer.ts b/functions/src/create-answer.ts
index cf3867b0..5cc8cf46 100644
--- a/functions/src/create-answer.ts
+++ b/functions/src/create-answer.ts
@@ -90,10 +90,8 @@ export const createAnswer = functions
         }
         transaction.create(newAnswerDoc, answer)
 
-        const loanAmount = 0
-
         const { newBet, newPool, newTotalShares, newTotalBets } =
-          getNewMultiBetInfo(answerId, amount, contract, loanAmount)
+          getNewMultiBetInfo(answerId, amount, contract)
 
         const newBalance = user.balance - amount
         const betDoc = firestore
diff --git a/functions/src/place-bet.ts b/functions/src/place-bet.ts
index 1b5dd8bc..2ffaf4d2 100644
--- a/functions/src/place-bet.ts
+++ b/functions/src/place-bet.ts
@@ -53,7 +53,6 @@ export const placebet = newEndpoint(['POST'], async (req, auth) => {
     const user = userSnap.data() as User
     if (user.balance < amount) throw new APIError(400, 'Insufficient balance.')
 
-    const loanAmount = 0
     const { closeTime, outcomeType, mechanism, collectedFees, volume } =
       contract
     if (closeTime && Date.now() > closeTime)
@@ -69,16 +68,16 @@ export const placebet = newEndpoint(['POST'], async (req, auth) => {
     } = await (async (): Promise<BetInfo> => {
       if (outcomeType == 'BINARY' && mechanism == 'dpm-2') {
         const { outcome } = validate(binarySchema, req.body)
-        return getNewBinaryDpmBetInfo(outcome, amount, contract, loanAmount)
+        return getNewBinaryDpmBetInfo(outcome, amount, contract)
       } else if (outcomeType == 'BINARY' && mechanism == 'cpmm-1') {
         const { outcome } = validate(binarySchema, req.body)
-        return getNewBinaryCpmmBetInfo(outcome, amount, contract, loanAmount)
+        return getNewBinaryCpmmBetInfo(outcome, amount, contract)
       } else if (outcomeType == 'FREE_RESPONSE' && mechanism == 'dpm-2') {
         const { outcome } = validate(freeResponseSchema, req.body)
         const answerDoc = contractDoc.collection('answers').doc(outcome)
         const answerSnap = await trans.get(answerDoc)
         if (!answerSnap.exists) throw new APIError(400, 'Invalid answer')
-        return getNewMultiBetInfo(outcome, amount, contract, loanAmount)
+        return getNewMultiBetInfo(outcome, amount, contract)
       } else if (outcomeType == 'NUMERIC' && mechanism == 'dpm-2') {
         const { outcome, value } = validate(numericSchema, req.body)
         return getNumericBetsInfo(value, outcome, amount, contract)
@@ -97,7 +96,7 @@ export const placebet = newEndpoint(['POST'], async (req, auth) => {
       throw new APIError(400, 'Bet too large for current liquidity pool.')
     }
 
-    const newBalance = user.balance - amount - loanAmount
+    const newBalance = user.balance - amount
     const betDoc = contractDoc.collection('bets').doc()
     trans.create(betDoc, { id: betDoc.id, userId: user.id, ...newBet })
     log('Created new bet document.')