Strike founder responds to margin adjustment policy, prioritizing the protection of BTC collateral assets and avoiding full liquidation

BTC4,76%

ChainCatcher News: Bitcoin payment app Strike founder Jack Mallers responded on the X platform regarding the adjustment of the margin call policy. He stated that Strike’s lending mechanism will not liquidate Bitcoin collateral entirely. When a loan falls below the maintenance margin level, the platform will only perform partial liquidation to bring the loan back to approximately 65% healthy loan-to-value ratio (LTV).

Jack Mallers added that this mechanism aims to maintain loan health while protecting users’ Bitcoin assets as much as possible and giving clients and Bitcoin price recovery more time. Based on this mechanism, the liquidation ratio of Strike’s overall loan book remains in the low single digits of the total outstanding loans, approximately 1%–3%.

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