Bitcoin Loan Comparison

Strike vs. Lava

Strike charges 7.49%–10.5% APR with $0 origination fees using custodial (proof-of-reserves for 50+ BTC). Lava charges 6.5%–7.5% APR with a 2% annual capital charge using distributed-key custody (institutional custodians). See the full breakdown of rates, thresholds, and custody risk below.

Terms checked individually — Strike: 2026-09-29; Lava: 2026-08-28.

How do Strike and Lava compare for Bitcoin-backed loans?

For the standardized $250,000, 50% LTV, 12-month scenario, Strike is 10% APR and Lava is 6.5% APR. Strike: Monthly-pay option; 12-month fixed term.

Lava charges a 2% annual fee (its “capital charge”) on the year's peak outstanding balance that recurs every year the line stays open — a fee that raises the effective cost above the headline rate from the day you borrow.

On a $250,000 loan held for 12 months, Lava saves $3,212 in total first-year cost (interest plus applicable fees or charges).

Strike vs. Lava: Feature-by-Feature Comparison

Strike

Lava

Interest Rate (APR)

10%

6.5%Lava

Pricing Basis

Loan size and payment schedule

Loan size

Fees / Charges

$0Strike

2% annual capital charge

Max Starting LTV

50%

60%Lava

Margin Call Threshold

70% LTVStrike

No published fixed threshold — warnings/notifications and Liquidation Protection are account-specific

Liquidation Threshold

85% LTV

Account-specific (model estimate: historically published 85% LTV)

Margin Call Window

72 hoursStrike

No fixed window published; warnings/notifications apply

Custody Model

Custodial (proof-of-reserves for 50+ BTC)

Distributed-key custody (institutional custodians)

Rehypothecation

Interest Payment

Monthly

Capitalized

Minimum Loan

$10,000

$100Lava

Cost on a $250,000 Loan: Strike vs. Lava

To keep the comparison clean, both lenders are modeled at $250,000 principal, 50% starting LTV, and a 12-month term, using monthly-pay pricing where available. Strike pricing varies by loan size and payment schedule; Lava pricing varies by loan size. Actual offers can differ when those inputs change.

Loan Size	Strike APR	Lava APR	Strike Total Year-1 Cost	Lava Total Year-1 Cost	Savings
$250,000	10%	6.5%	$25,000	$21,788	$3,212 with Lava

Assumptions: $250,000 principal, 50% starting LTV, 12-month term, and monthly-pay pricing where offered. Total year-1 cost includes annualized interest and fees, but does not add a fee again when the lender's published APR already includes it. Lava: 2% annual capital charge. Terms checked individually — Strike: 2026-09-29; Lava: 2026-08-28.

Custody and Collateral Security

Both Strike and Lava use similar custody approaches: custodial (proof-of-reserves for 50+ BTC) and distributed-key custody (institutional custodians) respectively. Strike uses custodial (proof-of-reserves for 50+ BTC). Your Bitcoin depends on the security and solvency of that custody arrangement and could be at risk in the event of a hack, insolvency, or regulatory action. Lava uses distributed-key custody (institutional custodians). Your Bitcoin depends on the security and solvency of that custody arrangement and could be at risk in the event of a hack, insolvency, or regulatory action.

Strike: High (Custodial)

•Custodial (proof-of-reserves for 50+ BTC)
•Rehypothecation: No
•Monthly interest payments
•0.

Lava: High (Custodial)

•Distributed-key custody (institutional custodians)
•Rehypothecation: No
•Interest capitalized (compounding)
•The headline rate excludes Lava's 2% annual capital charge, applied to the year's largest outstanding balance — and unlike a one-time origination fee, it recurs every year the line stays open.

Margin Call and Liquidation: Strike vs. Lava

Strike triggers margin calls at 70% LTV and liquidates at 85% LTV. Lava: No published fixed threshold — warnings/notifications and Liquidation Protection are account-specific. Positions liquidate at Account-specific (model estimate: historically published 85% LTV). Strike gives borrowers 72 hours to respond to a margin call. Lava has no mandatory margin-call step; no published fixed threshold — warnings/notifications and liquidation protection are account-specific.

Threshold	Strike	Lava
Max Starting LTV	50%	60%
Margin Call	70% LTV	No published fixed threshold — warnings/notifications and Liquidation Protection are account-specific
Margin Call Window	72 hours	No fixed window published; warnings/notifications apply
Liquidation	85% LTV	Account-specific (model estimate: historically published 85% LTV)

Safety Buffer at Each Lender's Maximum Starting LTV

This comparison uses each lender's own maximum starting LTV, not a common 50% starting position. Strike: 35.0 percentage point modeled buffer between maximum starting LTV (50%) and liquidation (85% LTV). Lava: 25.0 percentage point modeled buffer between maximum starting LTV (60%) and liquidation (Account-specific (model estimate: historically published 85% LTV)). Strike provides a wider safety margin.

Which is better: Strike or Lava?

Choosing between Strike and Lava requires evaluating total cost, custody risk, and which platform aligns with your borrowing profile. Strike uses custodial (proof-of-reserves for 50+ BTC) with 7.49%–10.5% APR, while Lava uses distributed-key custody (institutional custodians) with 6.5%–7.5% APR.

On the standardized $250,000, 50% LTV, 12-month scenario, Lava costs $21,788 in the first year versus $25,000 at Strike, a difference of $3,212.

Both platforms use similar custody approaches. Strike operates via custodial (proof-of-reserves for 50+ BTC), and Lava uses distributed-key custody (institutional custodians). Neither platform rehypothecates borrower collateral.

Strike is the better fit for borrowers who are borrowing $10,000 or more and are comfortable with custodial lending. Lava is the better fit for borrowers who need smaller loans or more flexible access.

Key details to be aware of: Strike: 0.79% fee if repaying with BTC collateral, 0. Lava: The headline rate excludes Lava's 2% annual capital charge, applied to the year's largest outstanding balance — and unlike a one-time origination fee, it recurs every year the line stays open. Interest compounds daily into the balance; the current-year capital charge does not itself accrue interest.

Frequently Asked Questions

Is Strike or Lava cheaper for a $250,000 Bitcoin-backed loan?

Lava is cheaper under the stated assumptions. On a $250,000 loan at 50% LTV held for 12 months, Strike costs $25,000 (10% APR) while Lava costs $21,788 (6.5% APR). That is a $3,212 difference in the first year.

How does Strike's custody model compare to Lava?

Strike uses custodial (proof-of-reserves for 50+ BTC). Lava uses distributed-key custody (institutional custodians). Both platforms present similar custody risk profiles.

What is the minimum loan amount at Strike vs Lava?

Strike's minimum loan is $10,000. Lava's minimum is $100. Lava is more accessible for smaller borrowers.

What happens if Bitcoin drops while I have a loan with Strike or Lava?

Strike issues a margin call at 70% LTV with a 72-hour response window and liquidates at 85% LTV. Lava publishes multiple warnings/notifications, but its liquidation and Liquidation Protection thresholds are account-specific; this comparison models liquidation using the historically published 85% LTV estimate. For a common 50% starting LTV (rather than each lender's maximum), the modeled buffers are 35 points at Strike and 35 points at Lava.

Should I use Strike or Lava for a Bitcoin-backed loan?

It depends on your priorities. Strike (7.49%–10.5% APR, custodial (proof-of-reserves for 50+ BTC), min $10,000) is better for borrowers who value custodial (proof-of-reserves for 50+ BTC) and have larger borrowing needs. Lava (6.5%–7.5% APR, distributed-key custody (institutional custodians), min $100) is better for borrowers who value distributed-key custody (institutional custodians) and need smaller loan access. Use the rate table and cost comparison above to model your specific scenario.

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Understand the key terms

Rehypothecation Discreet Log Contracts Custodial vs. Non-Custodial LTV Ratio Margin Call Counterparty Risk

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