APR10.5-14%(Fixed)
Risk score66High
Total risk score66High
Collateral
0/10
What are you pledging? Native BTC is safest; wrappers, bridges, or paper IOUs add redemption risk.
Native BTC (on-chain UTXO).
Rehypothecation
4/10
Will your BTC be re-used? More hidden leverage → bigger blow-up chance.
Collateral may be pledged once to a single outside funding partner under a 'no further rehypothecation' clause; enforceability of that clause against Strike's partner is unverified, so the borrower still bears partner-failure risk.
Custody
7/10
Who can move the coins? Scores quorum design, recovery paths, and (for CeFi) bankruptcy-remote segregation.
Omnibus custody with self-declared segregation (no external audit). Strike’s bitcoin-backed loan collateral is not held by a regulated third-party custodian with formal bankruptcy-remote arrangements. Instead, collateral BTC is either kept in Strike’s own custody or transferred to “trusted” third-party capital partners who fund the loans. Strike confirms that these coins are held in segregated wallets and never re-hypothecated (i.e. not lent out or mixed elsewhere). However, this segregation is an internal policy – Strike remains legally responsible for the collateral during the loan, so client BTC is not explicitly ring-fenced from Strike’s corporate estate via any independent trust or custodian. No public audit or proof-of-reserves is in place yet.
Security & Governance
7/10
How battle-tested are code and ops? Counts audits, bug-bounty, certs, and hardware key isolation.
Strike lists a SOC 2 logo in its Trust Center, but the report is gated behind an NDA and the firm discloses no scope or summary covering wallet tech, key-management or oracles. All critical signing code remains closed-source.
Platform
0/10
Is the chain or bridge robust? Rates consensus security and smart-contract attack surface.
Native Bitcoin script.
Oracle
10/10
How is price fetched and signed? Independence, on-chain proofs, refresh speed, circuit breakers.
No information at all about where the BTC price comes from or how it is validated, the only safe assumption is that the feed is an internal, centralized endpoint fully controlled by Strike (or its unnamed capital-provider partner).
Liquidation Buffer
2/10
How much room and time before liquidation? Combines LTV gap, grace window, and flash-crash guards.
Max LTV 50%, margin call at 70%, auto-liquidation at 85%. ~35pp buffer, 24h grace, no circuit breaker.
Rate & Term
2/10
Can interest spike mid-loan? Looks at fixed vs variable APR and funding duration match.
Borrowers can choose monthly interest or pay-at-maturity, but once the loan is issued the rate is locked-in.
Transparency
10/10
Can outsiders verify code & solvency? Rewards open-source + live PoR; punishes black boxes.
Fully closed-source. In Strike’s 29 May 2025 upgrade post the team lists “Proof-of-reserves–backed lending” under What’s next?—i.e., planned, not live. Strike has also promised that each loan will show its own on-chain BTC address, but those features are still absent. Until PoR is published or borrowers can actually view their collateral UTXOs, Strike remains a black box.
Loan Currency
2/10
What asset do you borrow? Native-BTC best; fiat stables graded on reserves, audits, censorship risk.
Funds are delivered in USD fiat, not a crypto-pegged token.
Privacy
7/10
How exposed is your identity? Scores KYC depth, data storage, and breach history.
Strike’s lending product requires strict KYC verification (government ID, personal info) as part of account onboarding.
History
4/10
Have they proven themselves? Measures years in production, audit/OSS footprint, and incident track record.
New platform (< 12 mo) with no incidents yet.
Jurisdiction
2/10
Which legal system backs you? Rates clarity of licensing, creditor rights, and enforcement.
Strike is registered in the United States.