Jack Mallers’ Strike Cuts Bitcoin Loan Terms to 6 Months to Kill Price Liquidations

The product, called volatility-proof loans, lets borrowers keep their bitcoin in place no matter how far the price falls, as long as they keep making payments. Mallers posted the announcement on X:

“No margin calls. No price liquidations. No matter how far bitcoin falls, your bitcoin doesn’t move.”

Strike’s standard bitcoin loans, launched in May 2025, work like most crypto lending products. Borrowers post BTC as collateral and receive USD without selling. But as the loan-to-value ratio climbs during a price drop, warnings hit at 65%, margin calls hit at 70%, and partial liquidations kick in at 85%.

Mallers Points to Customer Fear

Mallers described the concern at the Bitcoin 2026 Conference in April. He explained that customers kept asking what would happen if the price wicked down, or if a government headline or stock market crash triggered a liquidation. He called it their biggest fear.

The new loans respond directly to that feedback. Borrowers can originate a new loan, refinance an existing one, or consolidate multiple loans into a volatility-proof structure. There is no option to switch mid-term.

What Changes, and What It Costs

The trade-offs are specific. Volatility-proof loans cap initial LTV at 45%, compared to 50% on the standard product. Terms run six months instead of twelve. Interest rates carry roughly a 2.95% premium, pushing rates to a range of about 10.44% to 14.2% APR. Borrowers also lose the option to retrieve collateral mid-term.

A borrower posting $100,000 in bitcoin can access up to $45,000, compared to $50,000 on the standard loan.

Price protection has a limit. If a borrower misses an interest payment or fails to repay at maturity, a 10-day grace period applies. After that, Strike can sell part of the collateral to cover what is owed. Mallers made the distinction clear on X: “That’s why we call it ‘volatility-proof,’ not ‘liquidation-proof.’”

Repayment Risk Replaces Price Risk

Strike’s own account framed the shift plainly: “Every bitcoin loan before this had an invisible party at the table: the bitcoin price itself.” Removing that party does not remove risk. It shifts the risk from market movement to cash flow. A borrower who cannot make payments still faces a forced sale.

The product is limited to fixed-term loans in select U.S. states, and it excludes several major markets, including California, New York, and Texas, according to Strike’s current FAQ.

What This Means for Traders

For long-term bitcoin holders, the appeal is straightforward. They can borrow against their stack during a downturn without watching an LTV dashboard. The cost is a shorter term, less borrowing power, and a higher rate.

Strike is building the product alongside a $2.1 billion credit facility and a Tether partnership that supports segregated, onchain collateral tracking. The launch lands as bitcoin trades under $62,000, in the middle of a bear market phase that has tested holders’ patience since last year’s peak.