BTC lending platform Strike has updated its bitcoin-backed lending policies amid increasing crypto market volatility, extending the margin call recovery window and adjusting loan-to-value thresholds to give borrowers more flexibility.
Bitcoin lending platform strike extends margin call recovery deadline for Bitcoin-backed loans
The changes include extending the margin call recovery period from 24 hours to 72 hours and increasing the recovery threshold from 60% to 65%, according to Strike statements. Margin calls will now trigger at a loan-to-value (LTV) ratio of 70%, giving borrowers more time to add collateral or adjust their positions before any liquidation.
This policy change follows user feedback, 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, especially during periods of high price fluctuations in the crypto market.
CEO Jack Mallers emphasized that the changes reflect a customer-centric approach in volatile conditions. “At Strike, we will continue to show up, listen, work tirelessly, and care deeply about bitcoin and bitcoiners,” Mallers remarked. “I am incredibly proud of the team that listened to customers and built for them yesterday, in the heart of the storm. Built by bitcoiners, for bitcoiners.”
Strike echoed this message in a public statement announcing the update. “We have updated our margin call policy for strike loans,” the company wrote. “Recovery window: 72 hours (previously 24). Recovery threshold: 65% (previously 60). Designed to give customers more time and flexibility with their loans, particularly during periods of high volatility.”
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Mallers also emphasized that margin calls do not automatically result in liquidation. “By the way, a margin call is NOT liquidation. An important and considerable difference,” he said, adding that customers can find additional details on the company’s website and contact support directly.
The adjustments have been largely well-received within the Bitcoin community, with users citing the faster response time and revised thresholds as signs of increased transparency and responsiveness from the platform.
FAQs 📊
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What has Strike changed in 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 asserts that a margin call does not automatically result in liquidation. -
Why did Strike update its loan policy?
The company cited customer feedback and increased market volatility as the main reasons for the changes.
