Payment options for bitcoin-backed loans depend on if you choose to open a Monthly Payment or a Payment at Maturity loan.

Monthly Payment loans:

Monthly Payment loans let you pay the interest over 12 monthly payments and then repay the loan’s principal at the maturity date. This option gives you a lower overall interest rate.

• Monthly interest payments: Monthly interest payments are due on the 15th of each month, starting with the month after you opened your loan. Payments can be automatically pulled from your cash balance, bitcoin balance, or linked bank account (subject to your Strike account and bank account’s deposit limits). Your first and last interest payments are pro-rated to cover any days beyond or short of a full month.
• Final payment at maturity: The final loan payment is due on your maturity date, exactly 12 months after loan opening, and includes both the final interest amount and the loan’s principal. This payment can be sourced from your cash balance or your bitcoin collateral, with sufficient bitcoin sold to cover the amount and any remainder returned to you.

Payment at Maturity loans:

Payment at maturity loans let you make a single payment at the end of your loan, covering both interest and principal. This option lets you maximize the use of borrowed funds, however, due to the compounding effect on the deferred interest payments, this loan type incurs a higher interest rate.

• Payment at maturity: The only payment is due on your maturity date, exactly 12 months after you open your loan, and includes both the interest and principal. This payment can be sourced from your cash balance or your bitcoin collateral, with sufficient bitcoin sold to cover the amount and any remainder returned to you.

General payment Information

• Change source any time: You can change the your payment source at any time by tapping your Payment Tile in your Loan Center.
• Payment time: Payments are automatically pulled from your selected source at 2 PM UTC / 9 AM ET / 6 AM PT / 4 AM HT on their due date.
• 10-day grace period: If you fail to make a payment (either monthly interest or payment at maturity), you will have a 10-day grace period, after which part of your collateral will be liquidated to cover the overdue amount, plus a liquidation fee. Repeated use of the grace period can be grounds for loan termination.
• No partial payments: Payments cannot be split into partial payments from multiple sources (e.g., paying half with cash and half with bitcoin).
• Payment method limitations: Payments cannot be made using debit cards or Strike Instant. Additionally, late payments and payments at maturity cannot be sourced from a linked bank account.
• Taxable events Sourcing payments from your bitcoin balance, bitcoin collateral, or incurring a collateral liquidation for an overdue payment is treated as a bitcoin sale on your behalf, incurring a taxable event.