Strike's Volatility-Proof Loans Aim to Survive Price Swings Without Margin Calls

Strike, a financial services company, has introduced a new type of loan that it claims can survive price swings without forced selloffs of collateral. The loans are called volatility-proof bitcoin-backed term loans and were launched on July 7, 2026.

The idea behind these loans is to eliminate the risk of margin calls, which can happen when the value of the collateral falls significantly. This type of loan keeps the collateral untouched through the term, unless there's a missed payment or maturity payoff. In that case, there's a 10-day grace period before partial liquidation.

The maximum initial Loan-to-Value (LTV) for these loans is lower than Strike's standard loan at 45 percent versus 50 percent. The term is also shorter, lasting only six months instead of twelve. Additionally, the interest rate is higher, with a base APR range of 7.49 to 11.25 percent and a premium of 2.95 percentage points for the volatility-proof product.