Initial Margin (IM) and Maintenance Margin (MM) are used to manage the credit risk arising from open positions.
Derivatives Contract Margin Levels and Limits
The Derivatives Margin Schedule uses a Margin Category system.
Each contract has a Margin Category labelled Class A through Class G, with Class A offering the highest maximum leverage and Class G offering the lowest.
See the table below for margin requirements per margin class by position size in USD:
Category | Level I | Level II | Level III | Level IV | Level V | Level VI | Level VII |
|---|---|---|---|---|---|---|---|
Class A | 0 - $1,000,000 | $1,000,000 - $2,000,000 | $2,000,000 - $5,000,000 | $5,000,000 - $10,000,000 | $10,000,000 - $20,000,000 | $20,000,000 - $60,000,000 | $60,000,000+ |
Class B | 0 - $250,000 | $250,000 - $750,000 | $750,000 - $1,000,000 | $1,000,000 - $5,000,000 | $5,000,000 - $10,000,000 | $10,000,000 - $30,000,000 | $30,000,000+ |
Class C | - | 0 - $250,000 | $250,000 - $500,000 | $500,000 - $1,000,000 | $1,000,000 - $2,500,000 | $2,500,000 - $5,000,000 | $5,000,000+ |
Class D | - | - | 0 - $10,000 | $10,000 - $250,000 | $250,000 - $500,000 | $500,000 - $2,000,000 | $2,000,000+ |
Class E | - | - | - | 0 - $10,000 | $10,000 - $100,000 | $100,000 - $1,000,000 | $1,000,000+ |
Class F | - | - | - | - | 0 - $10,000 | $10,000 - $100,000 | $100,000+ |
Class G | - | - | - | - | - | 0 - $10,000 | $10,000 + |
Leverage | 50x | 25x | 20x | 10x | 5x | 3.33x | 2x |
IM | 2% | 4% | 5% | 10% | 20% | 30% | 50% |
MM | 1% | 2% | 2.50% | 5% | 10% | 15% | 25% |
For Margin Category Classification and Maximum Position Size in Base units per market, see:
Note: Margin percentages in derivatives 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 contract’s collateral value.
Kraken Derivatives reserve the right to update the margin schedule at any time without warning. Note that if there is not sufficient margin in a trader’s wallet to meet updated requirements, position(s) can be liquidated.
The decimal and thousands separators shown in this article may differ from the formats displayed on our trading platforms. Review our article on how we use points and commas for more information.
Last updated: 26-November-2024