New Collateral Options & Updated Haircuts for Derivatives trading

We’re expanding our derivatives multi-collateral trading suite with new collateral currencies, updated haircuts, and important changes to existing assets. These updates will give Kraken Pro traders more flexibility to manage positions and hedge risk in dynamic markets. Read on to see what’s new, how collateral works for Kraken Pro Derivatives, and what it all means for 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 your Derivatives wallet.
• BTC and ETH haircuts are decreasing; others are now aligned with Spot Margin levels—providing a consistent trading experience and making it easier to manage collateral across both products (read more here).
• PYUSD is scheduled for delisting as a collateral. 
• AUD and CAD expand the number of fiat currencies available with 0% haircuts.

Recap: ‘Haircuts’ and Multi-collateral Derivatives Trading

We support multi-collateral derivatives trading, meaning you can deposit a variety of assets into your “Derivatives Wallet” as collateral, rather than just USD or stablecoins. We apply a specific “haircut” (a reduction in effective value) to certain crypto collateral assets based on their volatility profile. Essentially, if you want to use crypto assets as collateral, a small portion of its value is considered unavailable for margin–although this doesn’t affect the actual value of your assets or incur any fees. Haircuts also apply to unrealized gains/losses and funding, helping maintain a safety margin in the trading system. 

Learn more:

New Collateral Assets

We have significantly expanded collateral choices available with the addition of 12 fiat and crypto assets listed here, alongside their haircuts:

Haircut changes 

We’ve also updated haircuts for a number of existing assets. Lower haircuts generally mean you can use more of that asset’s value as collateral, while higher haircuts indicate more conservative valuations.

Haircut reductions

The following assets have had collateral haircut reductions: 

Haircut extensions

The following assets have had collateral haircut extensions: 

What to Keep in Mind

It’s important to note that collateral assets transferred to your Derivatives wallet and used to open futures positions cannot be exchanged for other currencies or withdrawn while positions are open. These assets remain reserved as collateral and are visible in your account balance, but they are restricted from trading or withdrawals to your Spot Wallet until the positions are closed. You can check the availability of your collateral assets at any time in your Derivatives Portfolio tab.

Payward Digital Solutions Ltd. is licensed to conduct digital asset business by the Bermuda Monetary Authority. Trading futures, derivatives and other instruments using leverage involves an element of risk and may not be suitable for everyone. Read Kraken Derivatives’ risk disclosure to learn more.

These materials are for general information purposes only and are not investment advice or a recommendation or solicitation to buy, sell, stake or hold any cryptoasset or to engage in any specific trading strategy. Kraken does not and will not work to increase or decrease the price of any particular cryptoasset it makes available. Some crypto products and markets are regulated and others are unregulated; regardless, Kraken may or may not be required to be registered or otherwise authorised to provide specific products and services in each market, and you may not be protected by government compensation and/or regulatory protection schemes. The unpredictable nature of the cryptoasset markets can lead to loss of funds. Tax may be payable on any return and/or on any increase in the value of your cryptoassets and you should seek independent advice on your taxation position. Geographic restrictions may apply. See Legal Disclosures for each jurisdiction here.