We have increased our selection of collateral margin currencies to now include ARB, Fil, GRT, INJ, KAS, KSM, Mina, Sei & Tia.
We are committed to offering merchants greater flexibility and control, and we are delighted to announce a significant expansion of our margin guarantee opportunities for Kraken Pro Traders.
With this update, the number of collateral currencies that you can use for margin trading has increased to 44, plus substantial collateral haircut reductions on 23 other collateral margin active ingredients.
What is a collateral currency?
A collateral currency can be fiat, crypto or stablecoin that you can use to negotiate on margin. Unlike standard trading, margins trading allows you to open long or short positions by borrowing funds directly from Kraken.
When you negotiate on the margin, the Kraken margin basin is used for the purchase or sale of cryptocurrency, while your warranty ensures the extensions of the margin. The collateral currency you use does not need to match the trading pair of the order book on which you negotiate, allowing greater flexibility to go for a long time or short in any pair of trading activated by margin.
Note: Active ingredients that are not plunged and Kraken can be used as a margin guarantee. However, the assets held in the clearance of Kraken Pro On-Chain are not eligible to use as a margin guarantee.
Maximize the advantages of margins trading
Expanding the range of collateral currencies can empowers Traders in several ways:
Tax advantages: In some jurisdictions, the use of digital assets as a guarantee rather than selling them downright can transfer taxable events. By taking advantage of collateral currencies for margins trade, traders can potentially reduce immediate tax responsibilities while maintaining exposure to their assets.
Diversification of guarantees: Using several collateral currencies, you can better manage risks and reduce exposure to volatility in any unique active. This is particularly precious for merchants who seek to protect their positions on unpredictable markets.
Liquidity improvement: With more eligible assets as a guarantee, you can release funds for other negotiation possibilities while retaining robust positions on the sidelines. This ensures that your portfolio remains active and responsive to market changes.
Strategic flexibility: The ability to combine assets with different haircuts allows refined margin strategies adapted to your tolerance to risk and your market prospects. Whether you prefer conservative or aggressive exchanges, the widen guarantee options offer the adaptability you need.
Hbidging and shorts sale opportunities: With access to margins trading and a diversified range of collateral currencies, traders can cover their existing positions or take advantage of the downward market movements thanks to an uncovered sale. This opens up profit opportunities regardless of market management.
Lever and capital efficiency effect: Margins trading can amplify your purchasing power, allowing you to take more important positions than your available capital. This capital efficiency is further improved by the ability to use a wider range of collateral currencies, allowing you to maximize potential yields while optimizing resource allocation.
New choices of collateral currencies
Here is the list of 9 new assets added to the Kraken guarantees, bringing the total to 44 options.
| Active | Haircut |
| Arbitrum (ARB) | 10% |
| FILECOIN (wire) | 20% |
| The graphic (GRT) | 20% |
| Injective (INJ) | 20% |
| Kaspa (Kas) | 20% |
| Kusama (KSM) | 20% |
| Mina (Mina) | 20% |
| Sei (sei) | 10% |
| Celestia (TIA) | 10% |
Haircut changes in collateral currency
The following 23 active ingredients had improvements in the collateral margin haircut:
| Active | Old haircut | New haircut |
| Thal | 30% | 7.5% |
| Avax | 30% | 10% |
| LINK | 30% | 10% |
| Trx | 30% | 10% |
| ATOM | 30% | 10% |
| DOGE | 20% | 7.5% |
| GIVE BACK | 30% | 20% |
| CLOSE | 30% | 20% |
| STX | 30% | 20% |
| Salogner | 30% | 20% |
| RUNE | 30% | 20% |
| Pepper | 30% | 20% |
| Wif | 30% | 20% |
| Mana | 30% | 20% |
| Tao | 30% | 20% |
| Xtz | 30% | 20% |
| Sui | 30% | 20% |
| USDT | 10% | 0.5% |
| Xrp | 10% | 5.0% |
| GROUND | 10% | 7.5% |
| POINT | 10% | 7.5% |
| ADA | 10% | 7.5% |
| Paxg | 5% | 3% |
The following active ingredients had collateral haircut extensions:
| Active | Old haircut | New haircut |
| BTC | 0% | 1% |
| Ethn | 0% | 1% |
| USDC | 0% | 0.5% |
In addition to the JPY and MATIC above, were interrupted as collateral margin assets.
Understand the haircuts
When you use a currency as a guarantee, Kraken applies a “haircut” to determine its effective value. This haircut reflects the reduction percentage applied to the value of the assets to take into account the potential price volatility. For example, if you have an active $ 1,000 with a 20%haircut, its collateral value is calculated at $ 800. This approach guarantees greater stability and reduces the risk associated with the use of volatile assets as a margin guarantee.
What to keep in mind
It is important to note that the collateral assets used to open the positions of the margins cannot be exchanged for other currencies or withdrawn while the position is open. These assets remain reserved as a warranty and are visible in the balance of your account, but they are limited to negotiations or withdrawals. You can check the availability of your warranty assets at any time via the financing tab of your Kraken account.
Ready to exchange but you have no Kraken account yet? Register today!
The availability of margin trading services is subject to certain limitations and eligibility criteria. Trading using the margin involves a risk element and may not suit everyone. Read the declaration of disclosure of the margin of Kraken to find out more.
Trade with caution. There is no guarantee that a limit order will run. There is no guarantee of availability of the margin pool at any time. There is also no guarantee that a market order runs at a certain price. The availability and liquidity of the particular digital assets will have an impact on these types of orders.
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.
