Jack Mallers' Strike Launches "Volatility-Proof" Bitcoin-Backed Loans, Claiming No Liquidation from Price Drops

Odaily Planet Daily News: Strike, founded by Jack Mallers, has launched a new Bitcoin-backed mortgage loan product, with a key selling point being the avoidance of forced liquidation triggered by declines in BTC price. Strike states that as long as borrowers make timely repayments, regardless of how deep the Bitcoin price drops, the collateralized BTC will not be moved or liquidated.

In a post on X, Mallers stated that the product has no margin call requirements and no price-based liquidation mechanism, allowing users to borrow US dollars while continuing to hold their Bitcoin. He noted that volatility is inevitable, but liquidation is not.

Strike said the new loan product eliminates price-triggered actions linked to the loan-to-value (LTV) ratio, so borrowers do not have to worry about automatic liquidation due to a drop in BTC price. As long as interest and due payments remain current, the collateral will remain untouched.