Strike says borrowers can keep their Bitcoin even during sharp price declines as long as loan payments remain current. However, the company's terms still allow collateral liquidation if the loan-to-value ratio breaches margin thresholds and borrowers fail to add collateral or

What happened

Strike announced that borrowers can retain their Bitcoin during sharp price drops as long as they keep loan payments current, but the company can still liquidate collateral if the loan‑to‑value ratio falls below margin thresholds and borrowers do not add more collateral.

Confirmed

Global impact / market context

The policy gives borrowers more flexibility and reduces the risk of losing their Bitcoin during market volatility, while still protecting lenders by allowing liquidation if the loan becomes under‑collateralized.

Analyst inference

Bitcoin’s price has been volatile, prompting lenders to tighten collateral rules. Strike’s approach balances borrower protection with lender risk management, reflecting broader industry efforts to retain users amid price swings.

Analyst inference

What to watch

1. If Bitcoin prices continue to fall, monitor how many borrowers fail to add collateral, which could trigger more liquidations and affect Strike’s loan portfolio performance. Analyst inference
2. Watch for any changes in Strike’s margin‑threshold levels, as tighter thresholds could increase liquidation risk for borrowers and impact user retention. Proposed
3. Observe competitor lending platforms’ policies on collateral retention during price drops, which may influence borrower preferences and market share dynamics. Proposed

Affected assets

• BTC — Bitcoin

Evidence

• x.com