๐ก๏ธ STRIKEโS โVOLATILITY-PROOFโ BITCOIN LOAN REMOVES ONE RISK, NOT EVERY RISK
Strike has introduced a Bitcoin-backed loan structure designed without price-triggered margin calls or forced liquidation.
Under the reported model, even a major decline in $BTC would not automatically liquidate the collateral solely because of market volatility.
However, the borrower still faces:
โฆ Interest costs
โฆ Scheduled repayments
โฆ Credit obligations
โฆ Custody and counterparty exposure
โฆ Potential liquidation after missed payments
โฆ Tax and jurisdiction-specific consequences
CCN reported terms including a maximum 45% loan-to-value ratio, a six-month duration and interest rates reaching approximately 14.2%, depending on the product and borrower.
The key distinction is simple:
Price-liquidation risk may be reduced, but repayment risk is not eliminated. โฟ
@Strike
โ ๏ธ Educational information only. Borrowing against Bitcoin can result in financial loss. Terms, availability and rates may change. This is not a recommendation to borrow.
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