I agree with everything you said.

My comment is more about the "hypercollateralized loan in bitcoin" in general, not this specific 12-month one. I don't know what the man in the photo said or represents.

About the contract in general:

As I said, the interest must be fair to the guarantee, it must be low.

Although I didn't say it explicitly, the contract needs to be long-term, because BTC is volatile, but it always appreciates against FIAT in the long term. I would say it would need to be at least 1 BTC cycle. And in the same way that you have to replenish the guarantee, there must be some clause releasing the surplus when it exceeds the agreed ratio for the hypercollateral.

And as I also said, you have to check the custody risk very carefully.

With that said, about the specific contract you are talking about, I agree with you.