news.bitcoin.com
BTC lending platform Strike has updated its bitcoin-backed loan policies amid heightened crypto market volatility, extending the margin call recovery window and adjusting loan-to-value thresholds to give borrowers more flexibility.
Bitcoin Lending Platform Strike Expands Margin Call Recovery Time for Bitcoin-Backed Loans
The changes include expanding the margin call recovery period from 24 hours to 72 hours and raising the recovery threshold from 60% to 65%, according to statements from Strike. Margin calls will now trigger at a 70% loan-to-value (LTV) ratio, providing borrowers additional time to add collateral or adjust positions before any liquidation occurs.
The policy shift followed feedback from users, including concerns that the previous 24-hour recovery window was too restrictive for customers using multi-signature wallets. Strike said the updates were designed to provide greater flexibility, particularly during periods of elevated price swings across the crypto market.
Chief Executive Officer Jack Mallers emphasized that the changes reflect a customer-focused approach during volatile conditions. “At Strike, we’ll continue to show up, listen, work relentlessly, and care deeply about both bitcoin and bitcoiners,” Mallers remarked. “I’m incredibly proud of the team for listening to customers and building for them yesterday in the thick of the storm. Built by bitcoiners, for bitcoiners.”
Strike echoed that message in a public statement announcing the update. “We’ve updated our margin call policy for Strike Loans,” the company wrote. “Recovery window: 72 hours (previously 24). Recovery threshold: 65% (previously 60). Built to give customers more time and flexibility for their loans, especially during times of high volatility.”
Read more: Bitcoin and Ether ETFs Shed $515 Million as Selling Persists
Mallers also stressed that margin calls do not automatically result in liquidation. “By the way, a margin call is NOT liquidation. Important and big difference,” he said, adding that customers can find additional details on the company’s website and reach out directly for support.
The adjustments were widely welcomed within the Bitcoin community, with users citing the faster response time and revised thresholds as signs of increased transparency and responsiveness from the platform.
FAQ 📊
-
What did Strike change about its Bitcoin-backed loans?
Strike extended the margin call recovery window to 72 hours and raised the recovery threshold to 65%. -
When do margin calls now trigger on Strike loans?
Margin calls now trigger at a 70% loan-to-value ratio. -
Does a margin call mean liquidation?
No, Strike says a margin call does not automatically result in liquidation. -
Why did Strike update its loan policy?
The company cited customer feedback and heightened market volatility as key reasons for the changes.