Strike offers market-leading rates, fees, and terms for bitcoin-backed loans.
Loan terms:
- Loan term: 12-months
- Principal amount: Minimum $100,000 loan, maximum $2,000,000 loan
- Interest rate: 12% APR*
- Loan types:
- Payment at Maturity: Principal and interest repaid in a single payment at maturity
- Monthly Payments: Interest paid monthly, principal repaid at maturity
- Maximum initial LTV: 50%
- Interest accrual: Daily
- Loan closure: Available on demand 60 days after opening loan
- Origination fee: 0%
- Early repayment fee: 0%
- Late payment fee: 0% (10-day grace period for failed payments)
- Liquidation fee: 0.99% of the liquidated amount, applied in case of collateral liquidation due to critical LTV thresholds or failed payments
- Strike fee: Monthly and maturity payments from your bitcoin balance incur standard bitcoin trading fees, and will count towards your monthly trading volume.
*Payment at Maturity loans have an effective interest rate of 12.68% APR due to the monthly compounding effect on the deferred interest payments.
Your loan’s interest rate will remain unchanged for the duration of your loan. Strike may offer updated loan products in the future, including different interest rates or expanded limits. If more favorable loan options become available, you can access them by closing your current loan prematurely, without incurring any early closure fees, and opening a new loan. Follow Strike on social media for latest updates.
Example loan:
You take out a $100,000 loan on January 10th, and select a Monthly Payments type loan at 12% APR. Payments are due on the 15th of each month starting with the subsequent month after your loan is opened (February 15th). Given the maximum LTV at initiation is 50%, you must post at least $200,000 worth of bitcoin (or more to over-collateralize) to open the loan.
- Loan opening: Upon completing the loan opening process, your bitcoin collateral is debited from your bitcoin balance and $100,000 is credited to your cash balance.
- Monitor LTV: During your loan, you keep track of your LTV within your Strike app’s Loan Center, adding collateral if necessary to mitigate margin call risk.
- Monthly interest payments: Your first payment is due on February 15th, combining one full month’s interest plus January’s pro-rated interest for 5 days. The next 10 monthly payments (March through December) will be on the 15th of each month as regular interest payments.
- Loan maturity: The final payment is due on January 10th of the following year, and will include both the $100,000 principal plus the remaining pro-rated interest for the final month.
- Collateral return: Once the final payment is made, your bitcoin collateral amount is returned to your Strike balance within 1 business day.