Strike Launches “Anti-Volatility” Bitcoin-Backed Loans, Eliminating the Additional Margin Top-Up Mechanism

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BlockBeats News, July 8th - Strike announced the launch of a "Volatility-Proof" Bitcoin-backed loan product, eliminating margin calls and forced liquidations triggered by Bitcoin price declines. Jack Mallers stated that regardless of how much Bitcoin's price drops, as long as borrowers repay on time, their collateralized Bitcoin will not be liquidated due to price fluctuations.

The new product has a maximum loan-to-value (LTV) ratio of 45%, a loan term of 6 months, and an annual percentage rate (APR) ranging from approximately 10.7% to 14.2%, higher than Strike's standard loan products.

If a borrower defaults, they must repay within 10 days or communicate with the platform, otherwise Strike still has the right to sell a portion of the Bitcoin collateral to cover the outstanding debt. Strike stated that the product is currently available in most US states and can be used for new loans, refinancing, and debt consolidation.

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