Margin schedule and maximum leverage

For Kraken Futures we use Initial Margin (IM) and Maintenance Margin (MM) to manage the credit risk arising from open positions. IM and MM are a function of both contract type and of position size:

Position size: The larger a trader's position, the more liquidity is required to unwind that position in the event of an adverse price move.

Contract type: The more volatile a currency pair, the higher the margin that is required to withstand typical price moves.

 

Perpetual Contracts

Margin Levels and Limits

  Level I Level II Level III Level IV Maximum
Bitcoin-USD 0-500,000  500,000-1,000,000  1,000,000-3,000,000  >3,000,000 6,000,000
Ether-USD 0-250,000  250,000-500,000  500,000-2,000,000  >2,000,000 5,000,000
Litecoin-USD 0-250,000 250,000-500,000 >500,000 - 2,000,000
BitcoinCash-USD 0-100,000 100,000-500,000 >500,000 - 2,000,000
Ripple-USD 0-250,000  250,000-500,000  500,000-2,000,000 >2,000,000  4,000,000
Ripple-Bitcoin 0-100,000  100,000-500,000  >500,000  - 2,000,000
For Professional Clients
Leverage 50x 25x 17x 10x -
Initial Margin 2% 4% 6% 10% -
Maintenance Margin 1% 2% 3% 5% -
For Retail Clients
Leverage 2x 2x 2x 2x -
Initial Margin 50% 50% 50% 50% -
Maintenance Margin 25% 25% 25% 25% -

 

Fixed Maturity Contracts

Margin Levels and Limits

  Level I Level II Level III Level IV Maximum
Bitcoin-USD 0-500,000  500,000-1,000,000  1,000,000  - 3,000,000
Ether-USD 0-250,000  250,000-500,000  >500,000  - 2,000,000
Litecoin-USD 0-250,000 250,000-500,000 >500,000 - 2,000,000
BitcoinCash-USD 0-100,000 100,000-500,000 >250,000 - 1,500,000
Ripple-USD 0-250,000  250,000-500,000  >500,000  - 2,000,000
Ripple-Bitcoin 0-100,000  100,000-500,000  >500,000  - 1,500,000
For Professional Clients
Leverage 50x 25x 17x - -
Initial Margin 2% 4% 6% - -
Maintenance Margin 1% 2% 3% - -
For Retail Clients
Leverage 2x 2x 2x - -
Initial Margin 50% 50% 50% - -
Maintenance Margin 25% 25% 25% - -

Last updated: Mar-5-2019


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.

Margin requirement = 1 / Entry Price * Initial Margin * abs(Position Size)

Example for Professional Client

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%.