$BITGET
Heating UpSnapshot Window: 2026-07-08 04:20 UTC · ← Back to Crypto Overview
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Verbatim Community Citations & Social Evidence 1 source posts analyzed
Sigh. This product does not interest me at all. I have been asking for multi-year term debt against BTC collateral for many years. It's the only reasonable way to borrow. 6 months is not even close. Only thing that's even in the ballpark is joint-collateral with real estate. [Spoken audio]: Yo, what is going on, Bitcoin? I am back with another product announcement from us here at Strike introducing Volatility Proof Loans, a Bitcoin-backed loan where no amount of price dip will result in liquidation. Yes, you heard that right. Liquidations are now avoidable. Bitcoin-backed loans, a price move, can never liquidate. At Strike, we care deeply about truth, transparency, authenticity, and ultimately customer focus. Nobody cares more about the bitcoiner than we do. So anytime we have an announcement, I like to put together a presentation and record myself walking you all through what we built, why we built what we built, what it solves for and ultimately give you all a chance to ask us questions, give us feedback because we work for you. So without further ado, let's get into volatility proof loans where liquidations are now avoidable. If you are watching this presentation, you are probably well aware that Bitcoin doesn't move in a straight line. Obviously, over the long term, it tends to go way up and to the right. However, the journey there is volatile. Volatility is the price of admission. Deep drops in Bitcoin are expected along the way. Over the last 12 years, 10 of those have experienced a 30% drop in the Bitcoin price at some point. And since 2014, Bitcoin has had four drawdowns, greater than 50%. Again, this is the price of admission. This is how you earn your stripes. In the Bitcoin industry, we call this a bear market. It is to be expected. No asset is going to be the best performing asset in human history without a little bit of volatility, but this in lies the biggest amount of feedback we have gotten since we started to build credit products on top of Bitcoin, because it is a no brainer that if you don't have to sell your Bitcoin, you shouldn't. Why would you? Why would you sell the money that is the best performing? Why wouldn't you borrow fiat against it that is ultimately going to zero? Everyone wants to do what Sailor does. Fiat, which is going to zero over time, and a Horde Bitcoin, which is going to infinity over time, especially in the United States, where you incur a taxable event if you sell the Bitcoin. As long as the price of your Bitcoin back loan is less than the taxable event trigger and you expect Bitcoin to outperform the cost for you to borrow, it is an absolute no-brainer. Spend the fiat, keep the Bitcoin. The biggest amount of feedback we got is it could be risky. If you don't have enough Bitcoin to add collateral in the event of a 30% drawdown, a 50% drawdown, sometimes an 80% drawdown, then you may have some of your collateral partially liquidated. And that was the biggest feedback we got from you guys. Hey, I just can't sleep well at night in a setup like that. Or these dips aren't permanent. Is there any way we could avoid liquidation. I'll even pay you a little bit more just to know that no price movement will ever liquidate my Bitcoin. And what you're looking at on the screen is what we have today. LTV at 65%, we start issuing our customers a warning. Hey, here's a push notification, an email, pick up the phone, give you guys a call, let you know where your loan stands. And in LTV of 70%, we issue our first margin call where we give you 72 hours, that's three full days to act, that could pay down the loan a little bit, add some more Bitcoin as collateral, and just get yourself into a good standing, let us know that you're aware and you're addressing your loan. And in an LTV of 85%, we have no choice but to start to partially sell some of the collateral to get you back in good standing. Now I think we do this best in the industry because we do not sell all of your Bitcoin. We would not do that, we don't want to do that, we care too much about you guys. But what we have to do is, at that LTV threshold, we start to sell little amounts to get you back into these healthier LTVs. And that's how our product traditionally has worked up until this point. And everyone has come to us and said, man, I would do anything to just avoid this whole liquidation threshold piece, even though you guys just sell partially. I just can't sleep well at night. I know Bitcoin's going up forever. I just want to hold it. I just want a stomach. Maybe there's a three-month period or a three-day period or a 30-second period, and that really is the point, is a temporary dip can become a permanent loss in the way Bitcoin-backed loans have been built to date. The moment you can least afford to sell is often the moment you get that margin call. Nobody wants that. What if you're on vacation? What if you're sleeping? Nobody wants that. That was the biggest amount of feedback from our customers, and we had really built our products in accordance to how the industry has evolved over time. We had been fairly new to this space. Our Bitcoin-backed loan products are barely a year old, and the more feedback we've gotten, the more time we spent building these products, we've learned this is the core issue that really needs to be solved is this idea of being liquidated. We don't want to do it, our customers don't want it, so let's just solve it. Introducing volatility-proof loans. A Bitcoin-backed loan that a price move can never trigger liquidation of your collateral. warnings, no margin calls, no automatic sell-off. I'm telling you guys this is not a drill. You're hearing me correctly. So to make it very clear, there's no price move that can trigger a liquidation. So as I have in this visual, the Bitcoin price moves every day. It can go up 300% in a year, but then it goes down 50%, 80%. Obviously the trajectory is up, but that level of volatility when you have a Bitcoin-backed loan is the biggest amount of feedback we've gotten. If you open a volatility-proof loan, the Bitcoin never moves. I'm going to say that again. It never moves. We don't care what the price is. We don't care the WIC down. We don't care the LTV. You're good. You're good. When you get a volatility-proof loan, we have your back. No warnings. no margin calls, no liquidations, you sleep well at night. So now when you check your apps, if you have availability to the feature, there are now two loan types. You can open a standard loan, or you can open a volatility proof loan. You can also refinance a standard loan into a volatility proof loan if you want. So there's many ways to arrive at the ultimate protection of no liquidations by price. But the point is, it's protection made simple. When you go look at your loans, when you go look at your app, you'll see, hey, what's my margin call level? Nope, I'm protected. What's my LTV based liquidation threshold? Nope, I am protected. We wanted to give Bitcoiners a product that solves for their biggest pain point. At strike, I think we are so innovative, and we care so deeply about customers. This is our bread and butter is digging deep into what is the Bitcoin trying to solve for? What is their core issue? Specifically, you don't focus on prediction markets or altcoins or meme coins. We're not distracted by listing stocks in our app. What do Bitcoiners care about? And how can we solve for their needs? So let's take a look at how volatility proof loans on our app compare to standard loans. So the obvious pros are what is a price driven liquidation threshold? Never, never, never, never. What's your margin call threshold? Never, never, never, never. You sleep good at night. Now, how How does it compare in the other capacities? The maximum initial LTV is 45%, not 50%. That's marginal, but I want to point it out, transparency, transparency, transparency. The terms, we're going to start this out at only a six-month term. Now, this is the first product of its kind to market accessible to everyone in an app. It's really, really innovative, it's very, very new. So don't hold me to all of this. I'd love to offer a six-year volatility-proof loan, and I think someday we will be able to get there, but for now the term is six months on a volatility proof loan. We have to charge more for this. The secret sauce is that we're taking the extra charge that we're giving you guys and we're putting on hedges in the market to protect all of us, okay? So it's very sophisticated, it's not easy, it's very difficult actually, but of course it is worth it, but it has to be more expensive. So we add 2.95% to your rate. Now our standard loans start at 7.75%. So for me, I think Bitcoin is going to outperform 7.75 to 11.25%, even if you add 2 to 3% on top of that. I love the pricing. I'm a customer of the product. I think it's great, but you guys should know that. The protection isn't free. And then as far as retrieval of the collateral, our standard loan, we allow you to take the Bitcoin back if the price appreciates. Let's say you open a 50% LTV loan and Bitcoin quadruples to new all-time highs and we're in a euphoric bull run. We don't want all of that collateral. Feel free to take some back. We just want the minimum to collateralize the loan we gave you. There is no collateral retrieval for volatility-proof loans, at least not yet. So I want to be very clear about the tradeoffs. But if you're okay with a slightly shorter term and a little bit higher of a fee, there is no price move that can liquidate you. So just reiterate, this is the price of protection, the term six months, the lower maximum starting LTV, the slightly higher rate, and the fact that during that six months, we will don't want you to come and pull the collateral Bitcoin back out. And this is all for now. Now, let us launch it, let us build our feet here, but we've been testing the product internally. It's unbelievable. I'm very proud of the team. I think this is truly innovative and a sign of the times of where all of these features and tools are going. We want you as customers a strike to keep and grow your Bitcoin stack. And if you have opportunities to spend dirty filthy fiat, we want to make that available to you real quick. One of the reasons we called it volatility proof and not liquidation proof is you still owe us money because we're giving you a loan. Okay? So your payments still matter. Volatility proof protects against price movements. That's the biggest amount of feedback is what if there's a WIC? What if there's a prolonged bear market? What if something weird happens? That shouldn't result me and my sats departing forever and we agree with that. But it doesn't protect against you missing your payments and totally avoiding us and trying to run off with the money. we can't allow you to do that. So the duty to pay interest and repay principles unchanged. So if you miss a payment, we give you 10 full days, a week and a half to get in touch with us, make the payment or call us, tell us what's going on. Again, we care so much about the Bitcoiner. We are here. We have a support hotline. We have 24 seven globally distributed support team. Just give us a call, let us know what's going on, give you a week and a half to get back in good standing. But if we don't hear from you for a few weeks, then I may have no choice but to sell off some of the Bitcoin because it seems like you're doing a bit of a hit and run. I just want to be ultimately transparent about that. That's why we call it volatility proof and not liquidation proof broadly. You cannot take a loan and run away and miss your payments and perceive to be like you're never going to pay us back. That would not be good. want to be very clear that payments still matter. Now how to use this product? You can obviously originate a volatility proof loan from scratch. You can also refinance an existing loan and convert it into a volatility proof loan. You can also consolidate multiple loans that you have into one giant volatility proof loan. So we wanted to make the product as accessible as we can. This is rolling out for term loans in select U.S. states. We are not everywhere quite yet. Typical fashion for strike is that unfortunately the amount of regulators were regulated at the federal level and then state by state. And then now Europe, we have MECA, there's the U.K., there's Canada, Australia, all different regulators, all different frameworks. So us rolling out a product globally at once is traditionally very challenging. So we're able to get this into lots of U.S. states initially. And as we do, we're going to continue to update the product, make it better, make it more accessible. So check your apps. You should be able to see it if you're in the United States except for a few states. And if you don't see it, let us know. We'll keep you updated and make sure that you know when you have accessibility. So volatility is inevitable in Bitcoin, but liquidation is not. We have built a product where liquidation does not have to be something that you worry about when you go to bed at night. This is what it's all about. Building a Bitcoin company is not getting distracted, not working on other coins, not getting our mission commingled with prediction markets, staying focused, and focusing on you, the Bitcoiners. So if you're interested, go volatility proof. You know, listen, if you can afford it, obviously, if you're okay with the price, I think Bitcoin is going to perform over the long term. I love the terms. I think it's a no brainer to each their own. If you don't like it, don't use it. But go volatility proof, borrow dollars, keep the Bitcoin even through the greatest most fierce dips. Thank you guys for the support, questions, feedback, anything you want from us. Tag me on Twitter, DM us, reach out to support. We are here to support you. Much love. Catch you guys online. See Thank you. See ya.
