Digital financial services platform Strike launched a new volatility-proof bitcoin-backed term loan product on Tuesday, July 7, 2026.
The product is designed to protect borrowers from automatic liquidations during market crashes.
>>> Oasis Plans Massive United Kingdom Residency Gigs for 2027 Tour
It completely removes traditional price-based loan-to-value (LTV) triggers, ensuring collateral remains secure as long as scheduled payments are maintained.
According to reports from Crypto Briefing and TradingView, the system replaces standard LTV threshold frameworks with a mechanism where partial liquidations are triggered exclusively by missed payments rather than asset price drops.
Borrowers who miss a scheduled payment are granted a 10-day grace period to fulfill their obligations or contact the company before any liquidation occurs.
Higher Costs for Added Protection
The protective features require an increased initial collateral requirement, limiting the maximum initial LTV ratio to 45% compared to the 50% threshold on standard Strike loans.
Additionally, the volatility-proof product is restricted to a six-month duration, lacks a line of credit option, and carries an APR premium that is 2.95 percentage points higher than standard options.
With Strike's standard Bitcoin loans charging an APR between 7.75% and 11.25%, the new product carries an estimated interest rate ranging between 10.7% and 14.2%.
The company charges zero origination, prepayment, or liquidation fees for both loan options, which are accessible through the Strike app across most US jurisdictions.
Strike established its bitcoin-backed lending infrastructure throughout 2025 by securing a $2.1 billion credit facility and forming corporate partnerships.
