The founder of Strike responds to the adjustment of the margin call policy, prioritizing the protection of BTC collateral assets and ensuring no full liquidation

The founder of the Bitcoin payment application Strike, Jack Mallers, posted on the X platform to respond to the adjustment of the margin call policy. He stated that the Strike loan mechanism will not fully liquidate Bitcoin collateral. When the loan falls below the maintenance margin level, the platform will only perform partial liquidation to restore the loan to approximately 65% of a healthy loan-to-value (LTV) ratio.

Jack Mallers added that this mechanism is designed to protect users' Bitcoin assets as much as possible while maintaining loan health, and to buy more time for customers and the Bitcoin price to recover. Based on this mechanism, the liquidation ratio of Strike's overall loan book remains in the low single digits of the total outstanding loans, approximately 1% to 3%.