Collateral can be partially liquidated, however, if a borrower misses an interest or maturity payment and fails to pay within a grace period.
- Strike has launched a new bitcoin-backed lending product designed to protect borrowers from liquidation due to price volatility, as long as payments are kept current.
- The product eliminates margin calls and price-triggered liquidations, allowing borrowers to 'borrow dollars' while keeping their Bitcoin collateral untouched.
- This offering is available as term loans in select U.S. states and launches amidst a bearish market for Bitcoin.
Topics: Asset types, Risk default, Institutional adoption, Alternative assets, Credit counterparty risk, Onboarding prime brokerage
Tags: #strike #jackmallers #bitcoinloans #volatilityproof #liquidationprotection #margincalls #collateral #termloans #bearishmarket #btc
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