Kraken Futures is a platform where market participants can trade cryptocurrency Futures between each other. We are devoted to fostering a fair, transparent and liquid trading environment. Our Revenue Share Program (RSP) incentivises the provision of liquidity to our order books and rewards traders who trade significant volume. The RSP is open to all clients, entirely transparent and provides the same terms to everyone.
Every week the RSP pays out 30% of revenue per Contract Type, with a total payout floor of 25,000 USD (capped by revenue generated in each Contract Type). Check your real-time revenue share estimate here.
The initial RSP launched with a fixed USD payout on February 1st, 2019 at 12 pm UTC and then shifted to a 30% payout with minimum payout in USD starting in the week starting April 12, 2019 (after it was extended indefinitely on March 12, 2019.) Parameters were updated for the week starting May 31st.
The RSP measures clients’ contribution to the platform during one week intervals starting at 12 pm UTC each Friday. At the end of each interval, each client’s revenue share is calculated and paid out. Parameters then reset and the program reboots for the following week.
Payouts by Contract Types are shown in the following table. At payout time, USD amounts are converted into the respective payout currency at the prevailing CF real time index, and serve as a payout floor. The only time this is not the minimum payout is if the fees collected in the contract type are less than the payout floor. In that case the payout will be capped by the amount of fees collected.
|Contract Type||Distribution||Payout Collateral|
Your payout will then be:
If total fees collected in contract type > contract type floor:
Max(Your portion of 30% Revenue Share for Contract Type, Your portion of the converted Floor Payout Above)
total fees collected in contract type
The above table is in effect from the week starting May 31, 2019.
From the December 6, 12:00 UTC, if the revenue generated in the contract type is less than the listed minimum, the minimum payout will be limited to the revenue generated in that contract type. If the revenue generated is greater than the listed minimum, then the minimum will stand.
How is Contribution Measured?
For each client and Contract Type, we compute a Revenue Share Index (RSI) based on two key measures:
- Liquidity Share (every user has a value between 0 and 1.0)
- Volume Share (every user has a value between 0 and 0.5)
Hint: You can see your Liquidity Share and Volume Share in real time on the revenue share tab.
Liquidity Share Formula
Your liquidity share is calculated for each Contract Type based on your trading activity in each maturity of that Contract Type:
Weighted Order Size = OrderSize * 40 * 2 ^ ( 1 - ( abs( ( (OrderPrice – MidPrice ) / MidPrice ) * 10000 ) / 20 ) )
This formula rewards orders posted close to the mid price exponentially more than those further away.
Your Weighted Orderbook Presence = Sum of all your active Weighted Order Sizes for a given orderbook.
Total Weighted Orderbook Presence = Sum of Weighted Orderbook Presence across all clients for a given instrument at a given point in time.
Your Weighted Orderbook Share = (Your Weighted Orderbook Presence / Total Weighted Orderbook Presence)
This figure is computed every minute at a randomised second and averaged across all minutes of a given week:
Your Liquidity Share = (Sum of all your Weighted Orderbook Shares during the week) / 10,080
Once your liquidity share for a given maturity is computed, the liquidity share for the Contract Type is weighted by proportion of volume generated over the period.
Note: This means that the Liquidity Share across all clients sums to 1.0 for any given Contract Type.
Volume Share Formula
Your Volume Share represents your share in the total trading volume across all of the maturities of a Contract Type:
Your Volume Share = your trading volume during the week / total trading volume during the week / 2
Note: This means that the Volume Share across all clients sums to 1.0 for any given Contract Type.
Revenue Share Index Formula
Your Revenue Share Index (RSI) is calculated as a weighted average of your Liquidity Share and your Volume Share. Weightings are as follows:
|Volume Share Weighting||75%|
|Liquidity Share Weighting||25%|
Your RSI = 75% * your Volume Share + 25% * your Liquidity Share
Note: This means that the RSI across all clients sums to 1.0 for any given Contract Type.
Calculation of Payouts
Your revenue share for each Contract Type is calculated as a function of your RSI and the rank of your RSI relative to other participants:
|RSI Proportional Weighting||20.0%|
|RSI Rank Rewards|
The above table is in effect from the week starting May 31, 2019.
The three highest RSIs for XBT:USD Futures that we calculated for a given week are:
2nd: 0.1800 (yours)
This means that your RSI for XBT:USD Futures ranks second highest among all market participants. Assume that the Revenue to be shared for the week is 15 XBT.
Your revenue share for XBT:USD Futures is therefore calculated as:
15 XBT * ( RSI * RSI weighting + RSI rank 2 reward) = 15 XBT * ( 0.1800 * 20% + 17.5% ) = 3.165 XBT
The revenue share tab shows you your RSI value for the current week.
Worked Full Example
Assume that, for a given week and across the perpetual, month and quarter maturities of the ETH:USD Futures, you scored a Liquidity Share of 0.1250 and a Volume Share of 0.2850. Your RSI will then be:
0.1250 * 25% + 0.2850 * 75% = 0.2450
Let us assume this gives you an RSI rank of 2.
Assume also that ETH:USD spot price at 12 UTC is at $150 and the revenue earned for the week on ETH:USD contracts was 155 ETH. The 30% of this is 46.5 ETH.
Your portion of this revenue share for ETH:USD Futures would then be:
46.5 ETH * (0.2450 * 20% + 17.5%) = 10.416 ETH
However, the minimum floor for revenue share is:
8,000 USD / $150 = 53.33 ETH
That means this is the amount that will be used as the basis to disburse to the user.
So your share would be adjusted accordingly:
53.33 ETH * (0.2450 * 20% + 17.5%) = 11.94592 ETH
The final revenue share payment made to your Kraken Futures account will then be 11.94592 ETH instead of 10.416 ETH because the 30% revenue share is below the USD floor for the contract type. However, the floor is capped at the amount of revenue generated in the Pair. So if the total revenue amount generated in the above example was 9 ETH, then the payout would be capped at 9 ETH.
Hint: You can see your estimated revenue share the current week for each Contract Type in real time on the revenue share tab.
Terms and Conditions
Kraken Futures reserves the right to discontinue or modify the RSP at any time and for any reason and to temporarily or permanently exclude any participant from the RSP in response to suspected or actual abuse of the RSP by that participant.
The Revenue Share Program is not directed at residents of the United States and is not intended for distribution to, or by, any person in any country or jurisdiction where such distribution would be contrary to local law or regulation.