Jack Mallers' Strike Launches "Volatility-Proof" Bitcoin-Backed Loans, Claiming No Liquidation Due to Price Drops
Odaily reported that Strike, founded by Jack Mallers, has launched a new Bitcoin-backed loan product, which emphasizes avoiding forced liquidation triggered by BTC price drops. Strike states that as long as borrowers repay on time, their collateralized BTC will not be moved or liquidated, regardless of how deep the Bitcoin price falls.
Mallers stated on X 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 remarked that volatility is inevitable, but liquidation is not.
Strike indicated that the new loan product eliminates price-triggered actions linked to the loan-to-value (LTV) ratio, so borrowers do not need to worry about automatic liquidation due to BTC price declines. As long as interest and due payments remain current, the collateral will remain untouched.
