Jack Mallers launched Strike's volatility-proof bitcoin loans on July 7, 2026, a product designed to eliminate price-triggered liquidations for borrowers who maintain regular payments. The new loan structure responds to customer concerns about forced collateral sales during bitcoin price drops, a risk inherent in Strike's standard loan product launched in May 2025. Standard bitcoin loans trigger warnings at 65% loan-to-value ratio, margin calls at 70%, and partial liquidations at 85% as prices decline, creating what Mallers described at the Bitcoin 2026 Conference in April as customers' "biggest fear" regarding sudden price drops or market crashes.
Mallers posted the announcement on X, stating: "No margin calls. No price liquidations. No matter how far bitcoin falls, your bitcoin doesn't move." The product allows borrowers to keep their bitcoin collateral intact during price declines as long as they continue making payments. Borrowers can originate a new loan, refinance an existing one, or consolidate multiple loans into the volatility-proof structure, with no option to switch mid-term.
Strike Sets 45% LTV Cap and 6-Month Terms for Volatility-Proof Loans
Volatility-proof loans cap initial loan-to-value ratio at 45%, compared to 50% on Strike's standard product. Terms run six months instead of twelve months. Interest rates carry roughly a 2.95% premium, pushing rates to a range of approximately 10.44% to 14.2% APR. Borrowers posting $100,000 in bitcoin can access up to $45,000, compared to $50,000 on the standard loan. The product also removes the option to retrieve collateral mid-term.
Strike's account on X framed the distinction: "Every bitcoin loan before this had an invisible party at the table: the bitcoin price itself." Mallers clarified on X that the product is "volatility-proof," not "liquidation-proof," indicating that repayment obligations remain in force regardless of price movements.
Product Excludes California, New York, and Texas Under Current Terms
The volatility-proof loans are limited to fixed-term loans in select U.S. states. According to Strike's current FAQ, the product excludes California, New York, and Texas. The product is being built alongside a $2.1 billion credit facility and a Tether partnership that supports segregated, onchain collateral tracking.
Missed Payments Trigger 10-Day Grace Period Before Collateral Sale
Price protection does not eliminate all liquidation risk. If a borrower misses an interest payment or fails to repay at maturity, a 10-day grace period applies. After that period, Strike can sell part of the collateral to cover what is owed. The product shifts risk from market movement to cash flow, meaning borrowers who cannot make payments still face forced collateral sales.
The launch occurs as bitcoin trades under $62,000, in the middle of a bear market phase that has continued since last year's peak.
FAQ
What is the maximum loan amount available on Strike's volatility-proof bitcoin loans?
Borrowers can access up to 45% of their bitcoin collateral value. A borrower posting $100,000 in bitcoin can receive up to $45,000, compared to $50,000 on Strike's standard loan product.
What happens if a borrower misses a payment on a volatility-proof loan?
If a borrower misses an interest payment or fails to repay at maturity, a 10-day grace period applies. After that period, Strike can sell part of the collateral to cover what is owed.
Which U.S. states cannot access Strike's volatility-proof loans?
According to Strike's current FAQ, the product excludes California, New York, and Texas. The product is limited to fixed-term loans in select U.S. states.
