Strike just introduced a lending product that tackles one of the biggest fears in crypto borrowing: waking up to find your collateral has been liquidated because Bitcoin dropped 20% overnight.
The company’s new “volatility-proof” bitcoin-backed term loans, launched on July 7, eliminate all price-based loan-to-value triggers. In English: it doesn’t matter if Bitcoin falls to $30K or $20K or lower. As long as you make your scheduled payments, your bitcoin stays yours. No margin calls, no forced liquidations, no 3 AM panic.
How the product actually works
Strike’s new product throws the traditional LTV threshold framework out. The only thing that triggers partial liquidation is missed payments, and even then, borrowers get a 10-day grace period before anything happens.
The trade-offs are real, though. The maximum initial LTV sits at 45%, compared to 50% on Strike’s standard loans. You’re putting up more collateral upfront for the privilege of not losing it later. The term is capped at 6 months, half the 12-month duration available on standard options. And there’s an additional 2.95% APR premium baked in.
