Single-Collateral & Multi-Collateral Derivatives Contracts

Kraken Derivatives offers trading with distinct collateral wallet types depending on the contracts being traded.

The main differences are:

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    Cross & Isolated Margin

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    Collateral Currencies

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    Haircuts & Conversion Fees

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    Profit & Loss Currencies

Single-Collateral

Multi-Collateral

Collateral Currencies

BTC, ETH, LTC, BCH, XRP

20+ cash, stablecoin, and crypto assets

UI Availability

Offered on the futures.kraken.com UI

Offered on Kraken Pro as well futures.kraken.com UI

Risk Management

Up to 50x leverage

One margin wallet per collateral currency

Cross margin across different maturities of the same asset only

Up to 50x leverage

One wallet for all collateral currencies

Trade any contract with any or all collateral currencies

Cross margin across all collateral currencies by default

Isolated margin mode to restrict risk

Withdraw Unrealized Profit while keeping the position open


Contract Value

USD denominated: 1 contract = $1 USD

Coin denominated: 1 contract = 1 unit of cryptocurrency See contract specifications for decimal precision

Contract Types

Fixed & Perpetual

Fixed & Perpetual

Contract Specs

Fixed Inverse Contract Specifications

Perpetual Inverse Contract Specifications

Fixed Linear Contract Specifications

Perpetual Linear Contract Specifications

Fees

Maker-taker trading fees

Funding rate for Perpetual contracts

Maker-taker trading fees

Funding rate for Perpetual contracts

Conversion fees on non-USD

Interest on large unrealised losses not backed by USD

Profit Settlement

Settled in contract’s collateral currency (e.g. BTC for BTC/USD) 

Settled in USD by default with option to choose from a supported Derivatives collateral currency

Aside from the differing characteristics detailed in the sections below, order types, trading fees and margining remain largely the same.

This article aims to help you choose which collateral wallet is best for your trading strategies and preferences. For details about which contracts are single-collateral or multi-collateral, visit product listing summary.

Linear Multi-Collateral

Any derivatives collateral currency supported in the multi-collateral wallet can be used as margin for positions on any multi-collateral contract.

Inverse Single-Collateral

BTC, ETH, LTC, BCH, XRP

Each collateral currency has its own separate margin wallet to restrict risk. 

Only the base asset of the pair is valid as collateral. For example, BTC/USD contracts require BTC as collateral. 

See Derivates Collateral Currencies for more detail on supported currencies.

Margining

Kraken Derivatives offers users the choice of cross margin or isolated margin so that risk management can be effectively tailored to meet your trading strategy. 

Cross and isolated margin are both available as options from the Multi-Collateral trading wallet, while the Single-Collateral wallet operates similarly to cross margin but with wallets isolated per collateral asset. 

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    Cross margin refers to trading when the entire wallet balance is used as margin for open positions and all funds within that wallet are at risk. 

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    Isolated margin refers to trading where funds are withheld and isolated specifically for that position and only the isolated margin is at risk. 

The Holding wallet exists to allow the separation of funds from your active trading wallets. See: 

Order TypesAdvanced order options such as Stop Loss and Take Profit orders, Trigger Entry orders and options such as Maker Only, Reduce Only and Immediate or Cancel are available for all wallet types. See Order Types.Margin Schedule Our margin schedule increases the required maintenance margin as a position is increased in size. This helps reduce risk for both traders and the trading system itself. See Margin schedule and maximum leverageAssignment Program & Equity Protection ProcessOur Assignment Program & Equity Protection Process ensures no account will ever hold a negative balance after liquidation. Liquidity providers are given the opportunity to take on unfilled liquidation orders which can have favourable entry prices. For detailed information, see:

Trading Fees:

The trading fees applied are determined by the last 30 days of trading volume, please see the fee schedule. Higher volume traders obtain lower fees. Trading fees are the same for both Single-Collateral and Multi-Collateral contracts. 

Funding Rate:

The funding rate is a dynamic user-to-user transfer determined by the premium of a perpetual contract over or under the index price. The funding rate is charged for both Single-Collateral and Multi-Collateral perpetual derivatives contracts with the same formula, however the rates may differ on assets with pairs in both markets due to differing market conditions.The funding rate is debited/credited in different currencies depending on the contract traded:

Single-Collateral

Multi-Collateral

Profit/Loss Currency

Collateral currency

USD or chosen profit currency
(conversion fee applies to non-USD)

For more details on the calculation of the Funding Rate see our contract specifications articles:

Haircuts:

All collateral currencies within the Multi-Collateral wallet have value haircuts with the exception of USD.

Haircuts do not apply to collateral currencies in the Single-Collateral wallet.

Further details on haircuts are available on Derivatives Collateral Currencies.

Cash Conversion Rates & Fees:

Cash conversion rates and fees only apply to funds and positions in the Multi-Collateral wallet. As this wallet allows for multiple assets to be used as collateral, margined in real-time in USD terms, there is a need to constantly assess the USD value of all currencies held in the wallet to determine portfolio value, position values and liquidation levels. All profit and loss in the Multi-Collateral wallet is booked in USD. There may arise the need for currency conversions to USD when realizing losses if the wallet does not hold any or enough USD as collateral. See Fees for Multi-Collateral Derivatives for conversion fees and haircut schedule.

Funds will be converted and charged a conversion fee in the following scenarios:

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    Profit and funding realized in non-USD.

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    Realized loss uncovered by USD.

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    Payment of trading fee or interest uncovered by USD.

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    Funding rate payout uncovered by USD.

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    Automatic conversion thresholds are reached.

The profit payout currency for the Multi-Collateral wallet is USD by default but can be manually changed to any of the available collateral currencies. Losses are always realised in USD and conversion fees will apply to losses when there is insufficient USD as collateral to cover. 

Within the Single-Collateral wallet for inverse contracts the profit or loss is realised in the base currency.

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