Strike founder responds to adjustment of margin call policy, prioritizing protection of BTC collateral assets and ensuring no full liquidation
According to ChainCatcher, Jack Mallers, founder of the bitcoin payment app Strike, responded on the X platform to clarify the adjustment of margin call policies. He stated that Strike's loan mechanism does not fully liquidate bitcoin collateral. When a loan falls below the maintenance margin level, the platform only conducts partial liquidation to restore the loan to approximately 65% healthy loan-to-value (LTV) ratio.
Jack Mallers added that this mechanism is designed to maintain loan health while protecting users' bitcoin assets as much as possible and giving customers and bitcoin prices more time to recover. Based on this mechanism, the liquidation ratio of Strike's overall loan book remains in the low single-digit range of total outstanding loans, approximately 1%–3%.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Trader Gu Jingci: Midterm elections concluded, awaiting market signals
Diamondback (FANG.US): Permian Basin will become the largest natural gas producing region in the United States by the 2030s
Diamondback Energy (FANG.US) stated that the Permian Basin, the site of the highest oil production in the United States, will also become the country's largest natural gas production area sometime in the 2030s.
Disney (DIS.US) reportedly plans to lay off thousands of employees, with some managers being asked to save 20% of annual costs.
According to informed sources, Disney (DIS.US) is planning to lay off thousands of employees. The entertainment giant has asked some managers to set their annual cost-saving targets at 20%.
Crypto prices
More
