Trade SpaceX with up to 5x leverage before IPO: Kraken SPCX pre-IPO perp is now live

TL;DR

• Kraken listed a perpetual pre-IPO on SPCX (Space Exploration Technologies Corp., or “SpaceX”), so you can go there long or short on the SpaceX exhibit before it was made public.
• Trade with up to 5x leverage And multi-collateral margin (flex)with no expiration. Not available in the United States, EEA, Canada, Australia or New Zealand.
• Pricing uses a specially designed model Kraken PreMarket Synthetic Index which is smoothed and tightly bounded, designed to resist flash clearances in a small and early market.
• If and when SpaceX completes an IPO, Kraken intends to convert the contract to standard tokenized share pricingand contract specifications are expected to change.

What is SPCX Pre-IPO Perpetual?

SpaceX is one of the most valuable private companies in the world, but its shares are not yet publicly traded. The SPCX Perpetual Pre-IPO (PF_SPCXXUSD) is a cash-settled perpetual contract that allows you to express your opinion on the value of SpaceX today, without waiting for an IPO:

• Go long if you expect SpaceX’s valuation to rise up to and beyond a public premiere.
• Go short cover yourself or take the other side.
• No expirationso you can keep as long as you want, subject to margin.
• Multi-collateral marginthe contract is therefore settled and hedged on Kraken’s flexible account and a wide range of assets can support your position.

How Kraken Values ​​a Company That’s Not Yet Public

Since there is no public SpaceX stock or external index, Kraken evaluates this contract with a specially designed pre-IPO pricing engine:

• Synthetic index: The Kraken PreMarket Synthetic Index derives the reference price from the contract’s own market, rather than from an external feed that does not yet exist.
• Smoothing: The index is exponentially smoothed, so short-term spikes in a tight order book have little effect on it. Price discovery is intentionally measured.
• Price mark clamp: The reference price of the contract is maintained at all times at ±0.25% of the synthetic index. Even on a thin book, this band is designed to prevent momentary spikes from forcing liquidations: a brief shock only moves the mark fractionally, while a sustained move is tracked orderly over minutes rather than seconds.

How a pre-IPO perp differs from a standard Kraken perpetual

• Price source: A synthetic index, smoothed and tight, rather than an external spot index.
• Funding: Structurally small during the pre-IPO phase, because the mark is kept close to the index by the band of ±0.25%. A standard perpetual instead follows an external spot price.
• Liquidity: Early markets may be narrow and spreads may be wider than on mature contracts. The smoothing and tightening design exists to keep this early phase tidy.
• Conversion during IPO: Specifications are expected to change if and when SpaceX goes public (see below).

Contract specifications

What happens when SpaceX goes public?

When SpaceX completes its IPO, Kraken intends to move the price PF_SPCXXUSD from the synthetic index to the tokenized SpaceX xStocks spot index with normal funding. Contract specifications, including initial margin, maintenance margin, position limits, and financing, are expected to change at this point. Kraken will share full details and timeline of the conversion prior to any changes.

Payward Digital Solutions Ltd. is licensed to carry out digital asset business with 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 find out more.

xStocks are issued by Backed Assets (JE) Limited (a Jersey limited company) and offered to eligible Kraken customers via Payward Digital Solutions Ltd. (“PDSL”), a company authorized to carry out digital asset business by the Bermuda Monetary Authority. xStocks are not and will not be registered with any local securities regulator. PDSL (Kraken) does not provide investment advice and/or recommendations, and no communication, whether through any Kraken app or website or otherwise, should be construed as such. Individual investors should make their own decisions or seek independent professional advice if they are unsure about the suitability of an investment for their circumstances or needs, including potential tax treatment. Investing in xStocks involves an element of risk. The value of an investment can go up as well as down, and past performance is not a reliable indicator of future results. Not available in the United States or to U.S. persons. Geographic restrictions apply. Read Kraken’s xStocks Risk Disclosure at kraken.com/legal/xstocks as well as the Base Prospectus and the associated Final Terms for xStocks on to find out more.

Highly speculative and volatile: Pre-IPO perpetual securities are speculative instruments
and can move suddenly. You can lose your entire margin and, with leverage,
losses may exceed your initial deposit.

Liquidation and automatic deleveraging: Leveraged positions can be liquidated. As with
all Kraken derivatives, automatic deleveraging may occur; for a speculative pre-IPO
For a contract, this probability may be higher than for a mature contract.

No IPO/Pricing Unavailable: If a SpaceX IPO doesn’t happen, or a reliable index
the prize otherwise becomes unavailable, Kraken reserves the right to cancel and
settle the contract at a value determined by Kraken in accordance with its rules.

Conversion risk: upon conversion to a post-IPO contract, the
the pre-IPO mark may differ materially from the IPO/listing price, and there may be
significant volatility.

Changes to specifications: contract specifications (margins, limits, financing) are
should change upon conversion and can be adjusted by Kraken.

This is not investment advice: this is for informational purposes only and does not constitute an offer, solicitation or
recommendation. Products and leverage are not available in all jurisdictions.

No affiliation: The SPCX/SpaceX names and trademarks are used for identification purposes only;
Kraken is not affiliated with, endorsed or sponsored by Space Exploration
Technologies Corp.