Important:
Starting on January 15, Kraken Derivatives clients will be transitioned from Payward Brokers Pte. Ltd. (a Singapore-registered company) to Payward Digital Solutions Ltd. (a Bermuda-regulated entity).
To learn more about this change and review the updated Terms of Service, please visit our Bermuda Terms of Service page.
Kraken Derivatives provides access to derivatives on cryptocurrencies. Derivatives are leveraged products which are difficult to understand and may not be suitable for inexperienced investors.
BY TRADING ON KRAKEN Derivatives, YOU CAN LOSE UP TO YOUR ENTIRE DEPOSIT. You should not deposit money that you cannot afford to lose. You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade.
When trading on Kraken Derivatives, it is your responsibility:
- •To familiarize yourself with cryptocurrencies and Kraken Derivatives’ cryptocurrency Derivatives before you start trading.
- •To monitor your open positions and to reduce your position or deposit additional margin to avoid a losing position being closed out.
- •Not to deposit more than you can afford to lose.
- •Not to build positions that are beyond your financial capacity to maintain.
By using the Platform, you acknowledge that you have understood the associated risks and that you accept these risks, in particular that:
- •Cryptocurrency is a highly volatile asset class and is based on decentralized monetary protocols which are still in experimental stage and may change at any time.
- •Trading derivatives exposes you to market risk. This is the risk that you suffer a loss as a result of a position in Derivatives moving against you. If you hold a long position and the cryptocurrency price declines or if you hold a short position and the cryptocurrency price increases, you can lose all of your cryptocurrency or legal tender deposit.
- •Trading derivatives exposes you to credit risk. This is the risk that one or more of your counter-parties have deposited insufficient collateral into their Account(s) such that you may not receive some or all of the cryptocurrency or legal tender they owe you.
- •Trading derivatives exposes you to liquidity risk. This is the risk that you suffer a loss because you cannot close out a derivatives position because there is no demand to take the other side of that trade.
- •Trading derivatives exposes you to platform parameters risk. This is the risk that you suffer a loss because we have had to change parameters on the platform such as the margin requirements for a Margin Category or a specific contract pair.
- •Trading derivatives exposes you to operational risk. This is the risk that you suffer a loss because of a malfunction of the platform, for example resulting from scheduled or unscheduled downtimes, matching system failure, database failure, cryptocurrency transfer or storage failure, failure or malfunction of the API, hacker attacks or other failure or malfunction.
- •Trading derivatives exposes you to regulatory risk. This is the risk that you suffer a loss because we have to restrict or terminate elements of our service in response to regulatory action.
In Australia
Kraken Derivatives is a trading name of Payward Brokers Pte. Ltd. (a company incorporated in Singapore with registered number 201917834G) and Payward Digital Solutions Ltd. (a company incorporated in Bermuda with registered number 202403268, both Payward Group entities (known as Kraken). Clients that have agreed to terms and conditions of Payward Brokers Pte. Ltd. will access derivatives contracts listed on multiple venues via Payward Brokers Pte. Ltd. and/or Payward Digital Solutions Ltd. For Australian wholesale clients, clients that have agreed to terms and conditions of Beaufort Fiduciaries Pty Ltd (ACN 162 139 871, AFSL No. 545124) will gain exposure to futures contracts listed on multiple venues via Payward Global Trading Pte. Ltd.
Derivatives disclaimers
Does Kraken Derivatives provide investment advice?
We do not provide investment advice and none of the materials on our website nor any of our correspondence with you must be interpreted as investment advice.
Is Kraken Derivatives obliged to match my orders?
We reserve the right to refuse an offer to trade via the platform at our sole discretion. We also reserve the right to cancel a previously accepted, but unmatched, offer at our sole discretion or to roll back trades we deem to have happened erroneously.
How much money can I lose?
By trading on the platform, you can lose up to the entire deposits sitting in your trading accounts, for instance if a trade moves against you. However, you cannot lose more than that.
What are the risks associated with using the platform?
When using the platform, you may suffer a loss if:
- •Prices move against you.
- •If the value of your collateral drops below the liquidation threshold.
- •If the platform becomes temporarily unavailable or otherwise malfunctions.
- •If your trade counterparty does not post sufficient margin to cover any profits you make.
- •If you want to close out a position prior to maturity but there is insufficient liquidity to do so or if you do not operate the platform correctly, for instance by withdrawing digital assets to an address you do not control.