Strike founder responds to margin adjustment policy: prioritizing protection of BTC collateral assets and avoiding full liquidation

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Deep Tide TechFlow News: On February 12th, Bitcoin payment app Strike founder Jack Mallers posted on X to respond and clarify the margin call adjustment policy. He stated that Strike’s lending mechanism will not liquidate Bitcoin collateral entirely. When a loan falls below the maintenance margin level, the platform will only perform partial liquidation to bring the loan back to approximately 65% 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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