Strike, the bitcoin financial services firm led by CEO Jack Mallers, launched on July 7 a bitcoin-backed loan product that removes price-triggered liquidations for the entire life of the loan. This product, called « volatility-proof loans, » replaces the standard loan’s 65% LTV warning, 70% margin call and 85% automatic partial liquidation. In exchange, the initial LTV cap is set at 45% versus 50% for the standard loan, the term is reduced to six months from twelve, and the rate carries a roughly 2.95 percentage point premium over the standard 7.49%-11.25% APR range. The product is available only in select US states, excluding California, New York and Texas.
Source: Read the original article
