Kraken Derivatives offers both perpetual and fixed maturity contracts (monthly, quarterly, and semiannual*) across two wallet types: Coin-M and Multi-M. Contracts come in two payoff structures: inverse and linear.

For full details on listed contracts, see:

*Semiannual contracts available for BTC and ETH only.

Inverse contracts (Coin-M) have a non-linear payoff. You post crypto as collateral and P&L is settled in that same crypto. Because the collateral and contract denomination are different currencies, the payoff curve is non-linear, meaning a 10% price increase on a BTC/USD inverse contract yields a 9.09% BTC profit, while a 10% decrease yields an 11.1% BTC profit.

Linear contracts (Multi-M) have a direct 1:1 payoff. If the price moves 10% in your favor, your profit is 10%. P&L is settled in USD by default, with the option to choose a different collateral currency.

Inverse (Coin-M) example:

You buy 100,000 BTC/USD (PI_BTCUSD) contracts at $35,000. Each contract is worth $1, so this is a $100,000 notional position. The price rises to $40,000 and you sell.

(1 / Entry Price − 1 / Exit Price) × Position Size

(1 / 35,000 − 1 / 40,000) × 100,000 = 0.3571 BTC profit

Linear (Multi-M) example:

You buy 1,000 SOL/USD (PF_SOLUSD) contracts at $85. Each contract is worth 1 SOL. The price rises to $105 and you sell.

(Exit Price − Entry Price) × Position Size

(105 − 85) × 1,000 = $20,000 USD profit

Trading fees are the same across both Coin-M and Multi-M contracts and follow a maker/taker model based on your 30-day trading volume. Higher volume earns lower fees. See the Fee Schedule for full details.

The funding rate is a periodic payment between long and short holders on perpetual contracts. It's determined by the premium or discount of the perpetual contract relative to the index price, and applies to both Coin-M and Multi-M perpetuals. Rates may differ between Coin-M and Multi-M pairs for the same asset due to different market conditions.

Yes. Multi-M has two additional fee types that don't apply to Coin-M:

Conversion fees: When P&L, funding, or trading fees need to be settled and your wallet doesn't hold enough USD, non-USD collateral is automatically converted and a fee is charged.

Interest: May apply on large unrealised losses not backed by USD.

For full details, see Fees for Multi-M Derivatives.

Both wallet types support up to 50x leverage, with margin requirements that scale based on position size. See Margin Schedule and Maximum Leverage.

Coin-M uses cross margin exclusively. Each asset has its own wallet, so risk is naturally isolated per asset, but within a wallet, all funds are at risk. Margin netting is available between perpetual and fixed positions of the same asset.

Multi-M offers both cross and isolated margin. Cross margin uses the entire wallet balance as collateral. Isolated margin lets you designate specific collateral for a single position, protecting the rest of your wallet. You can also withdraw unrealised profit while keeping a position open.

No. Kraken's Equity Protection Process and Position Assignment System ensure liquidations never lead to negative balances, without requiring an insurance fund or claw-backs. If a liquidation can't be filled on the order book, it goes through an orderly unwinding process: first offered to market makers, then terminated as a last resort to prevent system losses. 

It depends on your objective. Perpetual contracts are best for longer-term positions since they don't expire and don't need to be rolled, though they carry a funding rate that can be positive or negative. Perpetuals tend to have the deepest liquidity. Fixed maturity contracts (monthly, quarterly, semiannual) may be better suited for hedging strategies or taking a view on a specific time horizon.

Your position will be cash settled at a rate representing the underlying spot market price.

The difference is primarily driven by supply and demand imbalances. When there's strong demand for leveraged long exposure, derivatives can trade at a premium to the spot price. The opposite creates a discount. In traditional markets, factors like interest rates and dividends also play a role.

Kraken Derivatives does not act as your trade counterparty. When you place an order, it's matched with another client's opposing order by the trading system. The exchange reserves the right to refuse orders that could lead to market manipulation or other unfair circumstances.

Not in the same maturity. If you hold a long position and place a sell order of equal size on the same contract, the long position will be closed. However, you can hold a long in one maturity (ex. the perpetual) and a short in another (ex. the monthly fixed) on the same asset.

Yes. You can close any position at any time by placing an opposing order (sell to close a long, buy to close a short). The party on the other side of your exit trade takes over your obligations.

No, unless there are existing open limit orders that would close the position if filled. In that case, the system considers those to be your closing orders, and any additional orders on the same contract are treated as new position orders that require margin. See Order Types for details.