Couldn't see why not in my opinion if you could achieve a rate on ratesetter that was greater than the rate on the loan you got. However just off the top of my head I believe most investment loan rates are in excess of 9% and hence returns would be very small.
I think $50,000 would be alright. $1,000,000 not so much. They have detailed readouts of fund pool size and they are all less than $200,000 last time I checked.