Svmuu News: Strike, founded by Jack Mallers, has launched a new “Bitcoin” loan product designed to prevent forced liquidation triggered by a drop in the price of BTC. Strike states that as long as borrowers make their payments on time, their collateralized BTC will not be moved or liquidated, no matter how much the price of Bitcoin falls.
Mallers stated on X that the product has no margin calls and no price-based liquidation mechanism, allowing users to borrow U.S. dollars while continuing to hold Bitcoin. He noted that volatility is inevitable, but liquidation is not.
Strike stated that the new loan product eliminates price-triggered actions tied to the loan-to-value (LTV) ratio, so borrowers do not need to worry about automatic liquidation due to a drop in the BTC price. As long as interest and maturity payments remain up to date, the collateral will remain untouched.