Bitcoin financial network Strike has launched a new “volatility-proof” lending product. It aims to eliminate automatic margin calls and price-driven liquidations, addressing a problem that has historically driven forced selling during steep market crashes.
Announced by Strike CEO Jack Mallers, the specialized product is a direct response to customer feedback from Strike’s 2025 lending pilot, which saw widespread liquidations when Bitcoin fell 54% from its $126,080 peak.
To bypass price liquidations, borrowers must accept a steep trade-off: a capped six-month duration, a conservative 45% maximum initial loan-to-value (LTV) ratio, and double-digit borrowing fees. While standard Strike lines range from 7.75% to 11.25% APR, the volatility-proof framework adds a 2.95 percentage point premium, pushing interest rates as high as 14.2%. Strike uses this extra margin to purchase institutional derivatives hedges that protect both the lender and the borrower from sudden downside moves.
The company stresses the product is “volatility-proof,” not “liquidation-proof.” Borrowers who miss a repayment have a strict 10-day window to settle balances or clear terms. If a borrower defaults on these timeline obligations, Strike will liquidate their underlying Bitcoin to recover the debt.
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