Liquidity Provider Preferences - Multi-Collateral
There are two sets of preferences that PAS participants can specify:
- general preferences: these are the acceptable high level conditions that a LP has for receiving assignments. They include: Time of week (Weekend, Weekdays), Contract pair (PF_BTCUSD, PF_ETHUSD)
- risk preferences: these are the specific size constraints a liquidity provider states they are comfortable with if an assignment meets their general preferences. These are applied on the contract level. They include: Max Per Assignment Size, Max Post-Assignment Position Size, and WEEKDAYS/WEEKENDS
- directional preference: this specifies whether you want to receive assignments that are LONG or SHORT, or both LONG and SHORT.
- Note: there is NO price consideration allowed on these preferences.
- Multi-collateral contract preferences are denominated in USD and use the same multi-collateral margin wallet.
Example: as a liquidity provider you want:
|
Contract Pair |
Max Assignment Size |
Max Position Size Post-Assignment Per Contract |
|
PF_BTCUSD |
400,000 USD |
2,000,000 USD NET LONG or SHORT PF_BTCUSD contracts |
|
PF_ETHUSD |
150,000 USD |
1,000,000 USD NET LONG or SHORT PF_ETHUSD contracts |
|
PF_SOLUSD |
200,000 USD |
1,000,000 USD NET LONG or SHORT PF_SOLUSD contracts |
Liquidity providers are NOT allowed to specify ANY price preferences in the program. Liquidity providers may ONLY be passive in the PAS, in such a way that the only preferences are about quantity to manage the limits.
Assignments always occur at best execution and are a last resort mechanism to provide an orderly market, only done after liquidation in the orderbooks fills any open orders at better prices than the 0 equity point of the undercollateralised trader.
See an example here.
Click on the sections below to view steps to manage your Assignment preferences
Clients can manage their Position Assignment Program (PAS) preferences via the Settings > Futures PAS tab on the Kraken Pro UI.
From here, clients must agree that they understand PAS and the risks involved. Once the client has confirmed they understand the PAS they can set the preferences. Preferences changes are limited on a per contract pair basis. The limit is currently set at 10 changes per 24 hour period (resets at 00:00 UTC).
The client must choose the contract pair, whether to accept long or short positions (or both), the max size, the max position per contract after assignment and the timeframe (weekends, weekdays, all).
Active preferences will show at the top of the page, with the preference history showing below.
Preferences can also be edited by clicking the edit icon on the right hand side of the row.
Clients can also delete a preference if they no longer wish to take part in the PAS. This will then create a new entry in the preference history:
Clients can manage their Position Assignment Program (PAS) preferences via the Assignment Program tab (Lightning Icon) on the platform.
From here, clients must agree that they understand PAS and the risks involved. Once the client has confirmed they understand the PAS they can select between single-collateral futures and multi-collateral futures. The preference parameters between single-collateral futures and multi-collateral futures vary and are treated separately. Preferences changes are limited on a per contract pair basis. The limit is currently set at 10 changes per 24 hour period (resets at 00:00 UTC).
The client must choose the contract pair, whether to accept long or short positions (or both), the max size, the max position per contract after assignment and the timeframe (weekends, weekdays, all).
Active preferences will show at the top of the page, with the preference history showing below.
Preferences can also be edited in bulk by selecting the checkbox next to ‘Contract Type’
Clients can delete a preference if they no longer wish to take part in the PAS. This will then create a new entry in the preference history:
