Margin borrow limits

The margin borrow limits for each currency varies based on your current verification tier:

 

  Tier 1 Tier 2 Tier 3 Tier 4
EUR 1,000 5,000 50,000 500,000
USD 1,000 5,000 50,000 500,000
USDT 1,000 5,000 50,000 500,000
XBT 0.5 2.5 25 250
ETH 5 25 250 2,500
ETC 50 250 2,500 25,000
XMR 10 50 500 5,000
REP 200 1,000 2,500 25,000
         

Note that each limit is independent from the other. So a Tier 3 user could borrow up to 50,000 EUR and 50,000 USD at the same time (assuming there are funds available to lend).

If you try to open a position with margin that exceeds your borrow limits, you will see a "margin allowance exceeded" error.

Long vs Short

For a crypto-to-fiat pair like XBT/USD:

  • To go long (i.e. buy XBT), you need to borrow USD and thus the USD borrow limits apply.
  • To go short (i.e. sell XBT), you need to borrow XBT and thus the XBT borrow limits apply.

For a crypto-to-crypto pair like ETH/XBT:

  • To go long (i.e. buy ETH), you need to borrow XBT and thus the XBT borrow limits apply.
  • To go short (i.e. sell ETH), you need to borrow ETH and thus the ETH borrow limits apply.

Note: the limits for going short and not supposed to be the same as the limits for going long. Limits are not based on the exchange rate. They are based on how much of each currency we have available for lending.

More Examples

Your account is Tier 3 and want to open a long position in bitcoin against fiat currencies. The maximum size of your position, assuming you had enough collateral to open it, would be 50,000 USD worth of bitcoin plus 50,000 euro worth of bitcoin. The number of bitcoins that it would be possible to buy in these positions would depend on the price of the current price of bitcoin. The limit would not be 25 bitcoin (the tier 3 limit for borrowing bitcoin).

If you wanted to open a short position in bitcoin against USD, EUR, or ETH, the limit on the size of the position would be 25 bitcoin because when you're shorting bitcoin, you're borrowing bitcoin from Kraken and selling it.