Strike has revised the terms for its bitcoin-backed loans as volatility across the crypto market remains elevated. The company said the recovery window after a margin call has been extended from 24 hours to 72 hours, while the recovery threshold has been raised from 60% to 65%. Under the updated policy, a margin call is triggered when a loan reaches a 70% loan-to-value ratio, giving borrowers more time to add collateral or adjust positions before liquidation takes place.
Recovery rules were loosened for stressed market conditions
Strike laid out the changes in a public statement, framing them as a way to give customers more flexibility during sharp price swings. The longer recovery period stands out. In practical terms, borrowers now have three days instead of one to respond after a margin call, and the higher recovery threshold changes the level they need to reach in order to restore the loan to compliance.
User feedback shaped the policy update
According to Strike, customer feedback played a direct role in the revision. The company said some users had raised concerns that the previous 24-hour recovery period was too restrictive, especially for customers using multisignature wallets. That issue matters during fast market moves, where moving funds and posting additional collateral can take longer than a single day.
Mallers draws a line between margin calls and liquidation
Chief Executive Officer Jack Mallers said the update reflects a customer-focused approach during volatile conditions. In his remarks, he said Strike would keep listening to customers and continue building for bitcoin users. He also stressed a specific point: a margin call does not automatically mean liquidation. Mallers said customers can review more details on the company’s website and contact the firm directly for support.
Strike repeated the same message in its announcement, saying the revised recovery window and threshold were built to give customers more time and flexibility with their loans during periods of high volatility. The report also noted that the changes were welcomed by parts of the Bitcoin community, with users pointing to the updated thresholds and faster response from the platform as signs of improved transparency and responsiveness.