Derivatives is expanding its multi-chorale trading suite with new collateral currencies, updated haircuts and significant changes to existing assets. These updates will allow Kraken Pro traders to have more flexibility in managing their positions and hedge risks in dynamic markets. Read what’s new, how collateral from Kraken Pro Derivatives works, and what it means to you.
At a glance:
- AAVE, CAD, DAI, Near, Mana, Render, Rune, STX, Sui, Tao, XLM, and XTZ are now available as collateral that can be moved to derivative wallets.
- BTC and ETH haircuts are declining. Others are currently tailored to spot margin levels, providing a consistent trading experience and making collateral easier to manage across both products (see here).
- PYUSD is scheduled to be delisted as collateral.
- AUD and CAD expand the number of Fiat currencies available with 0% haircuts.
Summary: “Haircuts” and multifaceted derivative trading
We will support Multicoratal Derivative trading means that a variety of assets can be deposited as collateral in a “driver wallet.” Apply a specific “haircut” (reduced effective value) to a specific crypto-secured asset based on the volatile profile. Essentially, if you want to use a crypto assurance as collateral, a small portion of its value is considered unavailable in the margin, but this does not affect the actual value of the asset or cover the fee. Haircuts also apply to unrealized profits/losses and funds, helping to maintain the safety margins of your trading system.
learn more:
New collateral assets
The 12 Fiat assets and crypto assets listed here have significantly expanded collateral options along with haircuts.
| assets | Haircut |
| CAD | 0% |
| Ghost | 20% |
| near | |
| give | |
| Rune | |
| stx | |
| sui | |
| Tao | |
| XTZ |
Changes to haircuts
We also updated haircuts for many existing assets. A lower haircut generally means that more of the value of the asset can be used as collateral, while a higher haircut shows a more conservative rating.
Reduce haircuts
The next asset included collateral haircut reductions.
| assets | New haircut |
| aud | 0% |
| BTC | 1% |
| CHF | 0% |
| ETH | 1% |
| EUR | 0% |
| GBP | 0% |
| USDC | 0.5% |
| USDT | 0.5% |
Haircut extensions
The next asset was a collateral haircut extension.
| assets | New haircut |
| Ada | 7.5% |
| atom | 10% |
| avax | 10% |
| Doge | 7.5% |
| fil | 20% |
| GRT | 20% |
| Inji | 20% |
| KSM | 20% |
| link | 10% |
| Mina | 20% |
| TRX | 10% |
What should you keep in mind?
It is important to note that collateral assets transferred to derivative wallets and used to open futures positions cannot be exchanged for other currencies or withdrawn while the position is open. These assets remain reserved as collateral and appear to be account balances, but are restricted from trading or withdrawing to a spot wallet until the position is closed. You can check the availability of your collateral assets at any time on the Derivatives Portfolio tab.
Payward Digital Solutions Ltd. is licensed by the Bermuda Monetary Authority to carry out its digital asset business. Using leverage to trade futures, derivatives and other equipment includes factors of risk and may not be suitable for everyone. For more information, please read Kraken Derivatives’ risk disclosure.
These materials are for general information purposes only and are not investment advice or recommendations or solicitations to purchase, sell, bet or hold CryptoAssets or engage in any particular trading strategy. Kraken does not work to raise or lower the prices of certain CryptoAssets that become available. Some crypto products and markets are regulated, while others are not regulated. Anyway, Kraken may or may not need to be registered or permitted to provide specific products and services in each market, and is not protected by government compensation and/or regulatory protection schemes. The unpredictable nature of the CryptoAsset market can lead to losses of funds. Taxes may be paid for returns and/or increased value of crypto assets, and you must seek independent advice on your tax position. Geographical restrictions may apply. Please see this legal disclosure by jurisdiction.
