At Kraken Futures we use Initial Margin (IM) and Maintenance Margin (MM) to manage the credit risk arising from open positions.
The larger a trader's position, the more liquidity is required to unwind that position in the event of an adverse price move.
Additionally, the more volatile a currency pair, the higher the margin that is required to withstand typical price moves. IM and MM are therefore a function of both, contract type and of position size, as shown in the following tables:
Single-Collateral Perpetual Inverse Futures Margin Levels and Limits:
| Units | Level I | Level II | Level III | Level IV | Level V | Level VI | Level VII | Level VIII | Level IX | Level X | Maximum | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Bitcoin-Dollar Futures | Contracts | 0-500,000 | 500,000-1,000,000 | 1,000,000-3,000,000 | 3,000,000-6,000,000 | 6,000,000- 12,000,000 |
- |
12,000,000-20,000,000 | 20,000,000-50,000,000 | >50,000,000 | - | 75,000,000 |
| Ether-Dollar Futures | Contracts | 0-250,000 | 250,000-500,000 | 500,000-2,000,000 | 2,000,000-5,000,000 | 5,000,000- 8,000,000 | - | 8,000,000- 15,000,000 | 15,000,000- 30,000,000 | >30,000,000 | - | 45,000,000 |
| Litecoin-Dollar Futures | Contracts | 0-250,000 | 250,000-500,000 | 500,000-2,000,000 | 2,000,000- 4,000,000 | >4,000,000 | - | - | - | - | - | 6,000,000 |
| BitcoinCash-Dollar Futures | Contracts | - | 0-500,000 | 500,000-2,000,000 | 2,000,000- 3,000,000 | - | 3,000,000- 5,000,000 | - | - | - | >5,000,000 | 10,000,000 |
| Ripple-Dollar Futures | Contracts | - | - | - | 0- 1,000,000 | - | >1,000,000 | - | - | - | - | 3,000,000 |
| Margin Parameters | ||||||||||||
| Leverage | 50x | 25x | 17x | 10x | 6.7x | 5x | 4x | 3.33x | 2.5x | 2x | - | |
| Initial Margin | 2% | 4% | 6% | 10% | 15% | 20% | 25% | 30% | 40% | 50% | - | |
| Maintenance Margin | 1% | 2% | 3% | 5% | 7.5% | 10% | 12.5% | 15% | 20% | 25% | - |
Note: Margin percentages are based on the value of the collateral currency at entry price. Margin requirements and maximum position size are calculated for each instrument individually per maturity.
Example: You are long 1,000,000 contracts in the Perpetual Bitcoin-Dollar Futures and 250,000 contracts in the Monthly Bitcoin-Dollar Futures.
Your IM requirement for the position in the Perpetual will be 2% for the first 500,000 contracts and 4% for the second 500,000 contracts, resulting in an average IM of 3%.
Your IM requirement for the position in the Monthly will be 2%.
Single-Collateral Fixed Maturity Inverse Futures Margin Levels and Limits:
| Units | Level I | Level II | Level III | Level IV | Level V | Level VI | Level VII | Level VIII | Level IX | Maximum | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Bitcoin-Dollar Futures | Contracts | 0-500,000 | 500,000-1,000,000 | 1,000,000- 3,000,000 | 3,000,000-6,000,000 | 6,000,000-9,000,000 | - | 9,000,000- 15,000,000 | 15,000,000- 30,000,000 | >30,000,000 | 40,000,000 |
| Ether-Dollar Futures | Contracts | 0-250,000 | 250,000-500,000 | 500,000-2,000,000 | 2,000,000- 4,000,000 | 4,000,000- 6,000,000 | - | - | >6,000,000 | - | 15,000,000 |
| Litecoin-Dollar Futures | Contracts | - | 0-500,000 | 500,000-2,000,000 | 2,000,000- 3,000,000 | >3,000,000 | - | - | - | - | 5,000,000 |
| BitcoinCash-Dollar Futures | Contracts | - | 0-500,000 | 500,000-2,000,000 | 2,000,000- 2,500,000 | >2,500,000 | - | - | - | - | 3,000,000 |
| Ripple-Dollar Futures | Contracts | - | - | - | 0- 1,000,000 | - | >1,000,000 | - | - | - | 3,000,000 |
| Margin Parameters | |||||||||||
| Leverage | 50x | 25x | 17x | 10x | 6.67x | 5x | 4x | 3.33x | 2.5x | - | |
| Initial Margin | 2% | 4% | 6% | 10% | 15% | 20% | 25% | 30% | 40% | - | |
| Maintenance Margin | 1% | 2% | 3% | 5% | 7.5% | 10% | 12.5% | 15% | 20% | - |
Note: Margin percentages are based on the value of the collateral currency at entry price. Margin requirements and maximum position size are calculated for each instrument individually per maturity.
Example: You are long 1,000,000 contracts in the Perpetual Bitcoin-Dollar Futures and 250,000 contracts in the Monthly Bitcoin-Dollar Futures.
Your IM requirement for the position in the Perpetual will be 2% for the first 500,000 contracts and 4% for the second 500,000 contracts, resulting in an average IM of 3%.
Your IM requirement for the position in the Monthly will be 2%.