BlockBeats news, on July 8, Strike announced the launch of a "Volatility-Proof" Bitcoin-collateralized loan product, eliminating margin calls and forced liquidations triggered by Bitcoin price declines. Jack Mallers stated that regardless of how much the Bitcoin price falls, the collateralized Bitcoin will not be liquidated due to price volatility as long as the borrower repays on time.
The new product has a maximum loan-to-value ratio (LTV) of 45%, a loan term of 6 months, and an annual percentage rate (APR) of approximately 10.7% to 14.2%, higher than Strike’s standard loan product.
If the borrower defaults, they must repay the loan or communicate with the platform within 10 days; otherwise, Strike retains the right to sell a portion of the Bitcoin collateral to cover the outstanding debt. Strike states that this product is currently available in most U.S. states and can be used for new loans, refinancing, and debt consolidation.