thats not how it works, they provide fiat and when a loan is paid back or defaults they get paid back fiat
loans have significant risk, borrow conservatively if at all, i think they are most useful as legal tax avoidance rather than leverage
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Oh, I was under the assumption that you post Bitcoin as collateral and if you default that Bitcoin is liquidated to satisfy the loan in USD. Which would be why the Bitcoin price can’t fall a certain amount with having to post more collateral.
If I’m Strike and one of customers default, I’m going to satisfy the loan in USD and keep the Bitcoin or some ration of that.