We expand our multi-collateral trade suite derived with new collateral currencies, updated haircuts and significant changes in existing assets. These updates will give Kraken Pro Traders more flexibility to manage the positions and risks of coverage on the dynamic markets. Read the rest to see what is new, how the guarantees work for pro Kraken derivatives and what all of this means for you.
At a glance:
- AAVE, CAD, DAI, near, Mana, Render, Rune, STX, SUI, TAO, XLM and XTZ are now available in warranty which can be moved to your derivative wallet.
- BTC and ETH haircuts decrease; Others are now lined up on punctual margin levels – providing a coherent trading experience and facilitating guarantees management on the two products (find out more here).
- Pyusd is planned for warranty.
- AUD and CADA develop the number of fiduciary currencies available with 0% haircuts.
Recapitulation: “haircuts” and exchange of multi-collateral derivatives
We support multi-collateral Exchange of derivatives, which means that you can deposit a variety of assets in your “derivative portfolio” as guaranteed, rather than simply USD or Stablecoins. We apply a specific “haircut” (a reduction in effective value) to certain cryptographic collateral assets according to their volatility profile. Essentially, if you want to use cryptographic assets as a guarantee, a small part of its value is considered to be unavailable for the margin – even if this does not affect the actual value of your assets or incur fees. Haircuts also apply to unrealized gains / losses and funding, helping to maintain safety margin in the trading system.
Learn more:
New collateral assets
We have considerably widened the collateral choices available with the addition of 12 Fiat and Crypto assets listed here, alongside their haircuts:
| Active | Haircut |
| Goujat | 0% |
| Aave | 20% |
| CLOSE | |
| GIVE BACK | |
| RUNE | |
| STX | |
| Sui | |
| Tao | |
| Xtz |
Haircut changes
We have also updated haircuts for a number of existing assets. Weaker haircuts generally mean that you can use more value of this asset as guaranteed, while higher haircuts indicate more conservative assessments.
Hair cuts reduction
The following active ingredients have undergone adults of collateral haircuts:
| Active | New haircut |
| Aud | 0% |
| BTC | 1% |
| CHF | 0% |
| Ethn | 1% |
| Eur | 0% |
| GBP | 0% |
| USDC | 0.5% |
| USDT | 0.5% |
Cutting extensions
The following active ingredients had collateral haircut extensions:
| Active | New haircut |
| ADA | 7.5% |
| ATOM | 10% |
| Avax | 10% |
| DOGE | 7.5% |
| Net | 20% |
| Grt | 20% |
| INJ | 20% |
| Ksm | 20% |
| LINK | 10% |
| Mina | 20% |
| Trx | 10% |
What to keep in mind
It is important to note that the collateral assets transferred to your derivative portfolio and used to open the event positions cannot be exchanged for other currencies or removed while the positions are open. These assets remain reserved as a warranty and are visible in the balance of your account, but they are linked to negotiation or withdrawals to your wallet for you until the positions are closed. You can check the availability of your warranty assets at any time in the tab of your derivative portfolio.
Payward Digital Solutions Ltd. is authorized to carry out digital asset activities by the Bermuda Monetary Authority. Futures negotiated, derivatives and other instruments using the lever effect involve a risk element and may not suit everyone. Read the disclosure of the risks of Kraken derivatives to find out more.
These documents are for general information only and are not investment advice or a recommendation or solicitation to buy, sell, count or maintain a cryptoasset or engage in a specific negotiation strategy. Kraken does not work and does not work to increase or decrease the price of a particular cryptocurrency that it makes available. Some cryptographic products and markets are regulated and others are not regulated; Be that as it may, Kraken may or may not be obliged to be recorded or otherwise authorized to provide specific products and services on each market, and you cannot be protected by governmental remuneration and / or regulatory protection plans. The unpredictable nature of the crypto-tassets markets can cause loss of funds. The tax may be payable on any declaration and / or on any increase in the value of your cryptocurrency and you should request independent advice on your tax position. Geographic restrictions can apply. See legal disclosure for each jurisdiction here.
