"THERE WILL BE NO RE-HYPOTHICATION".
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If the terms of the loan require transferring collateral to the lender in any arrangement that isn't a multisig where you are a party, then rehypothecation is likely to occur. At best the collateral will be segregated and moved individually and can be observed. At worst it will be mixed into a pool of similar collateral and you won't be made whole when a link in the chain of trust-me-bro fiduciaries goes awry. This isn't new. It's business as usual. Read and understand the terms of contracts before playing the game.
I think we take the transparency of Jack and Strike for granted sometimes. You can tell he's working hard to get things right and address concerns.
Are you guys just now figuring out that Strike is shady af? Have you looked at the limits? Lifetime limits (if you don't want to give them your biometrics) are temporary for DEPOSITS and PERMANENT for WITHDRAWALS AND SENDS. Which means if you are not careful ans you deposit over time you are likely to run into a situation where it's impossible to withdraw or send everything you've deposited without giving out your biometrics. I.e. they can hold your money hostage.
this is disappointing
Sad
it is the difference between legal terms and reality
loan collateral is being held securely by strike and liquidity partners, not being used to trade or βgenerate yield,β but needs to be moved around occasionally for business operations
strike is full reserve with strong bitcoin security practices and is well capitalized with over 1500 bitcoin in their corporate treasury
they will release proper proof of reserves in the next few months
even after that, all custodial products require trust
90% of bitcoin bought on strike is withdrawn to self custody, free dca, free withdrawals
Re-Hypothecate is specific terminology. In my business I donβt often see lawyers and attorneys just tossing extra words in for something they donβt really mean. If thereβs zero risk of being re-hypothecated then have the terms rewritten.
Sad watching odell and jack cross over to the dark side.
Which is exactly what Jack said they're already doing.
I hope they do.
Slowly, then suddenly
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Disappointed
Here is the updated agreement (Section 3.K).
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We work with partners to facilitate the loan
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Your collateral is securely held in segregated wallets with us and partners
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Your collateral is NEVER rehypothecated, on-lent, or used in any other way
Our goal is to offer the best possible terms and experience for Bitcoiners. We will continue to iterate with you all based on feedback. Next up, we plan to provide proof-of-reserves based lending.
We work for you, #Bitcoin. Thanks for the feedback.
We want to be the most customer focused company in the world. Built by Bitcoiners, for Bitcoiners.
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