Margin Schedule

For 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 table:

 

Position Limits (# Contracts) per Maturity

  Level I Level II Level III Maximum Status
Bitcoin-Dollar Futures 0-500,000  500,000-1,000,000  >1,000,000  3,000,000 (2,000,000 for Quarter)) Active
Ether-Dollar Futures 0-250,000  250,000-500,000  >500,000  2,000,000 (1,500,000 for Quarter) Active
Litecoin-Dollar Futures 0-250,000 250,000-500,000 >500,000 2,000,000 (1,500,000 for Quarter) Active
BitcoinCash-Dollar Futures 0-250,000 250,000-500,000 >500,000 2,000,000 (1,500,000 for Quarter) Active
Ripple-Dollar Futures 0-250,000  250,000-500,000  >500,000  2,000,000 (1,500,000 for Quarter) Active
Ripple-Bitcoin Futures 0-250,000  250,000-500,000  >500,000  1,500,000 (1,000,000 for Quarter) Active
Margin Parameters for Professional Clients
Leverage 50x 25x 17x - -
Initial Margin 2% 4% 6% - -
Maintenance Margin 1% 2% 3% - -
Margin Parameters for Retail Clients
Leverage 2x 2x 2x - -
Initial Margin 50% 50% 50% - -
Maintenance Margin 25% 25% 25% - -

Last updated: 27/12/2018

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 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 Weekly 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%.