Announcing Kraken’s liquidity pool for futures

Make sure to check the legality and understanding of risks related to this tradings in your jurisdiction.

We are constantly trying to provide our customers with a secured trading experience in the crypto markets. That is why we are proud to introduce our Liquidity Pool for Futures; designed to minimize the need to unwind any futures positions, and to enhance the experience of users of our thereunder placed Position Assignment System (PAS).

The liquidity pool is a set of funds established specifically to reduce possible losses arising through slippages typically caused by volatile or low-liquidity conditions on the market; hereby acting as an extra protective force, next to our PAS. When, for a certain reason, a position needs to be liquidated at its liquidation price extreme market moves are counteracted if it cannot be implemented through the order book creating an additional security in refund already present investments.

We refuel this pool through a finely tuned Liquidation Fee. Besides protecting existing investments, this also comingles its enabling progressions with certain other limitations, like, making adjustments to the PAS – This positional system is an optional choice for experienced traders and liquidity suppliers who wants to overcome stakes from uncollated liquidations. Auxiliary by having sufficient adjunctive position parties will be guaranteed to benefit when engaging in officially assigned protocols.

Deliberations documented in a recent introduction regarding this PAS ensure the safety margins, mainly a 0.5% increase in order pricing and a 0.5% – 2.5% endurance marker maximizing net profitability. Deriving from this suggestions PAS plans emerge perpetuating a leadership in fortified environment alongside profitable structures for traders alike.

To extend our devotion towards safety, participation and achievements in the field of Risk Management and Crypto Markets continue read our assumptions and coding partaker on “ Trading Futures on Pro Risk “.

Disclaimer: Trading futures, derivatives and other instruments can be subject to high risk and may not be sensible for everyone. Make sure to assent on Kraken’s regulatory aspects in securities. Before any trading settles on risk acknowledgment methods please check the actions towards legislation in your jurisdiction.

Robert Wilson author
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