At Kraken Derivatives 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 tables:
Multi-Collateral Perpetual Linear Derivatives Contract Margin Levels and Limits
Multi-Collateral 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. Position sizes are displayed in USD below:
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% |
See Multi-Collateral Contract Specifications for Margin Categories and Maximum Position Sizes in Base units.
Note: Margin percentages in multi-collateral 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.
Your IM requirement for the position in the Class B will be 2%.
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.
For information on single-collateral inverse derivatives margining details, see Inverse Derivatives Margin Schedule & Maximum Leverage
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: 1-May-2024