Strike just introduced a lending product that tackles one of the biggest fears in crypto borrowing: waking up to find your collateral has been liquidated because Bitcoin dropped 20% overnight.

The company’s new “volatility-proof” bitcoin-backed term loans, launched on July 7, eliminate all price-based loan-to-value triggers. In English: it doesn’t matter if Bitcoin falls to $30K or $20K or lower. As long as you make your scheduled payments, your bitcoin stays yours. No margin calls, no forced liquidations, no 3 AM panic.

How the product actually works

Strike’s new product throws the traditional LTV threshold framework out. The only thing that triggers partial liquidation is missed payments, and even then, borrowers get a 10-day grace period before anything happens.

The trade-offs are real, though. The maximum initial LTV sits at 45%, compared to 50% on Strike’s standard loans. You’re putting up more collateral upfront for the privilege of not losing it later. The term is capped at 6 months, half the 12-month duration available on standard options. And there’s an additional 2.95% APR premium baked in.

On the fee side, the picture looks cleaner. Zero origination fees. Zero prepayment fees. Zero liquidation fees. That applies to both the volatility-proof and standard loan products.

The loans are available through the Strike app in select US states, with an important caveat: lines of credit are excluded from the volatility-proof option. This is strictly a term loan product.

Why this matters more than it sounds

During previous market downturns, cascading liquidations turned manageable price corrections into full-blown crises. Borrowers who posted Bitcoin as collateral watched helplessly as their positions got liquidated at the worst possible moment, selling the bottom and locking in maximum pain. Platforms like Celsius, BlockFi, and Voyager all collapsed in the fallout of the 2022 bear market, and forced liquidations were a significant accelerant.

Strike CEO Jack Mallers framed the product as a fundamental shift in risk management for bitcoin holders, one that prioritizes borrower payment adherence over volatile market conditions. The framing is deliberate: Strike is betting that the lender’s real risk is borrower creditworthiness, not Bitcoin’s Tuesday price action.

The lower 45% LTV threshold is how Strike manages its own exposure. By requiring borrowers to overcollateralize more aggressively upfront, the company creates a larger cushion that can absorb price drops without needing to liquidate.

Strike’s lending ambitions in context

This launch doesn’t exist in a vacuum. Strike spent much of 2025 building out its bitcoin-backed lending infrastructure, including establishing partnerships and securing a $2.1 billion credit facility.

At the time of launch, Bitcoin was trading around $63,000, underscoring exactly the kind of volatile environment where liquidation protection becomes most valuable.

For investors considering these loans, the math is straightforward but worth doing carefully. The 45% LTV means posting roughly $2.22 in Bitcoin for every $1 borrowed. Add the 2.95% APR premium on top of whatever the base rate is, and you’re paying a meaningful cost for volatility protection.