Strike adjusts margin increase policy, founder clarifies prioritizing the protection of customers' BTC assets to reduce liquidation impact

SmartContractAuditor · 2026-02-12T10:55:57+00:00

Bitcoin payment app Strike announces adjustment to margin policy. Founder Jack Mallers states there will be no full liquidation; partial liquidations will keep the loan healthy at a 65% LTV level, aiming to protect users' Bitcoin assets. The liquidation ratio will be maintained between 1% and 3%.

SmartContractAuditor

2026-02-12 10:55:57

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Odaily Planet Daily reports that Bitcoin payment app Strike announced on X platform that it will adjust its margin call policy. Its founder Jack Mallers clarified that Strike’s lending mechanism will not fully liquidate Bitcoin collateral. When a loan falls below the maintenance margin level, the platform will only perform partial liquidation to bring the loan back to approximately 65% of the healthy loan-to-value ratio (LTV). Jack Mallers added that this mechanism aims to maintain loan health while protecting users’ Bitcoin assets as much as possible and giving clients and Bitcoin prices more time to recover. Based on this mechanism, the overall liquidation ratio of Strike’s loan book remains in the low single digits of the total outstanding loans, approximately 1%–3%.

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