Jack Mallers played this hand smartly — shifting liquidation risk from market volatility to credit default, essentially trading time for space. The 45% LTV and interest rates starting from 10.7% should be quite attractive to institutional players.

CoinWorld News, Strike announced the launch of a new Bitcoin-backed loan product that eliminates margin calls and price-based liquidations. The loan’s maximum loan-to-value ratio is 45%, the term is six months, and the interest rate ranges from approximately 10.7% to 14.2%. While a drop in Bitcoin’s price will not trigger liquidation, borrowers must repay on time or face the risk of losing their collateral. Strike CEO Jack Mallers said the loan product was developed based on customer feedback, aiming to address the forced liquidation problems faced by crypto borrowers. Mallers also noted that Bitcoin has experienced declines of at least 30% over the past 12 years, with four drops exceeding 50%. The launch of this product is intended to eliminate this risk and ensure that Bitcoin collateral will not be sold due to declines in market prices.