It trades volitity. And that goes both ways. It makes money on down days, and up days. It doesn't make money on days that Bitcoin doesn't more. There have been days of 0% returns because of it.

They make .0025% on the internal market. When you sell your BCC to get BTC they take .0025% of that trade. Same a Bittrex and other markets.

They don't loan out to clients. YOU loan money to them. If you lend them $1000, you get the equivalent of $1000 at the end.

They also make money on their debit card, again charging .0025%

They also seem to make money by combining BTC transfers. When I transfer BTC out of Bitconnet I notice that my transfer is bundled with other transfers. Bitconnet charges me 0.0004 BTC transfer Bitcoin out. They are then combining my transfer with 10-20 other transfers.

Then they make money with the trading, they take the money I lend them and then share the profits with me.