TL;DR
- Traders with open positions sometimes need liquiditybut close a workstation raising capital is not always the right decision
- Flexible line allows you borrow against your assets without closing your positions, thus the capital becomes available and the position remains intact
- Fixed rate, known in advance: you know your cost of borrowing before you commit
- Prices: 10 to 25% APR (fixed). Terms: 2 days to 2 years. Customizable LTV
Most traders think carefully about entry and exit. Fewer think about what happens when a position is open and they need capital for something else: another opportunity, a short-term cost, something that won’t wait. The instinct is to shut something down. But closing a position that is still functioning is not always the right decision.
This article is aimed at the trader who has active positions, needs liquidity and does not want to unwind what is already working to get it.
The position that works
Alex has been on Kraken Pro for two years. He held several active positions, some for weeks, others for months. He does not want to close quickly. He builds positions around a thesis and lets them run.
The problem he constantly encounters is that of liquidity. Its capital is deployed in positions that work. When a new opportunity arises or needs liquidity for something outside the portfolio, the obvious decision is to close something. But closing a position mid-thesis to raise capital is a trade he didn’t want to make.
What he needed was a way to access liquidity without the positions themselves being part of the equation. Without closing them or restructuring them: it is enough to borrow on what it holds, at a fixed cost that it can plan, while everything else remains open.
“The market doesn’t wait for you to close a position. Flexline means I don’t have to do that.
Flexline allows Alex to borrow against his existing holdings, BTC, ETH or any of the 48 supported assets, at a fixed rate, for a defined duration. The positions he built remain open. Capital becomes available. He can deploy it in a new opportunity, cover a short-term cost or keep it as a buffer: whatever the circumstances.
The price is fixed for the entire duration. He knows how much a loan costs before committing. He can choose a duration adapted to the calendar, from two days to two years, and adapt the loan to his real needs.
Keep both
Alex spots a new opportunity while two existing positions are in progress. The capital he would need is tied up in these positions. The options are: close one of the current positions, let the opportunity pass, or find another way.
With Flexline, he borrows against his assets at a fixed rate for a defined period. It does not close either of the two racing positions. The capital is there. Existing positions remain intact. He can seize this new opportunity in the same way he would have done if his capital was not already deployed.
The cost of the loan is fixed and known before it is committed. He chooses the term based on timing: shorter if he hopes to repay quickly, longer if he needs more runway time. Either way, nothing he’s already built is affected.
The positions remain. The capital is moving.
What Flexline changed for Alex was the decision he faced every time he needed capital and his portfolio was fully deployed. This decision, which position to close, how much to give up, what the cost of timing would be, is no longer the only way.
He borrows on what he holds, at a rate that he has accepted in advance, for a period adapted to his situation. Positions are in progress. The capital works. The cost is known from day one.
Why Flexline is suitable:
- Positions remain open: borrow against your assets without closing what is already working
- Customizable LTV: check the amount you borrow against your guarantee
- Core assets held as collateral: Long-term positions remain intact while you deploy capital elsewhere
- Duration from 2 days to 2 years: match the term to your timeline; shorter terms result in lower rates
What to think about before borrowing
Flexline is a term loan and not a trading position. Once the loan is opened, the rate is fixed for the duration. You can repay early, but early repayment fees apply. Consider the length of the term before committing.
LTV and liquidation. If the value of your collateral falls to the liquidation threshold, your collateral may be liquidated to repay the loan. Kraken shows you where that threshold is before you borrow. Factor this into your position size.
Sell or borrow. Flexline makes sense when you want to keep your positions intact and can cover the cost of the loan. If the cost of borrowing exceeds the value of holding the position, selling may still be the better option. The decision depends on your specific situation.
