At Kraken Derivatives 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 Derivatives | 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 Derivatives | 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 Derivatives | 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 Derivatives | 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 Derivatives | 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.
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 Derivatives | 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 Derivatives | 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 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 Derivatives | Contracts | - | 0-500,000 | 500,000-2,000,000 | 2,000,000- 2,500,000 | >2,500,000 | - | - | - | - | 3,000,000 |
Ripple-Dollar Derivatives | 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.
Your IM requirement for the position in the Monthly will be 2%.