Perpetual futures, without the folklore

The contract

A dated future expires and is settled. A perpetual does not. Kraken's linear multi-collateral specification says these contracts have no expiration date, with an hourly process that applies funding so the price stays anchored to an index. Kraken can still suspend, restrict, or settle a contract in an emergency. That right is theirs, and it is written into the specification.

Linear, in Kraken's terms, means one contract is one unit of the base asset. A move in the price is a move in USD profit or loss. Profit and loss are cash-settled in USD by default. Kraken also offers inverse coin-margined contracts, which pay in the coin and use a different wallet. PERP KING trades the linear multi-collateral perpetuals, not the inverse contracts and not the fixed-maturity contracts.

Collateral for that wallet can be more than USD. Kraken applies haircuts to non-USD collateral and can convert collateral when USD is needed for a loss, a fee, or a funding payment. The list of currencies and haircuts is Kraken's, and it changes. Read Derivatives Collateral Currencies from the specification page before you assume a coin balance counts in full.

Long, short, and margin

A long position profits if the price rises and loses if it falls. A short position does the opposite. Neither requires borrowing the coin in a spot account. Both require margin, and both can be liquidated. Leverage is the ratio of position size to the margin supporting it. It magnifies both outcomes.

Kraken's specification for these perpetuals lists initial margin as low as 2% and maintenance margin at half of initial margin, with exchange leverage that on some contracts goes far above what a customer can select here. Those are Kraken's schedule, by position size and contract. The customer cap inside PERP KING is 1× to 10×, set by you, and a trade can be sized below it. See trading limits and liquidation.

On the multi-collateral wallet, cross margin is Kraken's default: the wallet's collateral is shared across positions. Isolated margin exists in Kraken's product. PERP KING does not send an instruction to isolate a position. Know which mode your account is actually using.

Several prices, on purpose

The last traded price is a print on the book. The index is a reference price for the underlying. The mark price is what Kraken uses to value the position and to judge liquidation. For these perpetuals, Kraken defines the mark as the index plus a 30-second exponential moving average of the gap between an impact mid price and the index, with the perpetual premium capped at 1%. If the index is unavailable, Kraken says that cap may not apply and the mark can equal the impact mid.

PERP KING's protective stop is triggered on that mark price, not on the last trade. The reason, and the remaining gap risk, are on protective stops. Funding, which is the mechanism that pulls the contract toward the index, is on funding.

What autonomy means on this contract

The contract is the same whether a person clicks or software sends the order. Autonomy is the decision. PERP KING monitors the market and chooses LONG, SHORT, or WAIT, then manages the position through to the exit. The customer sets the limits. The software chooses the trade.

It also does not change the contract. Funding still accrues on a live position. Liquidation is still Kraken's. A stop can still be jumped. Those are properties of the market, described in the other three notes, not parameters we publish as an edge.

Questions

Sources

Figures in this section are Kraken's, from the documents linked below. They are not PERP KING settings, and Kraken can change them. Clients in the EEA should use the specification Kraken links for that region.

• Linear Multi-Collateral Derivatives Contract Specifications — Kraken, last updated 8 September 2026. A separate specification is linked from that page for EEA clients.
• What are Derivatives? (FAQ) — Kraken
• Derivatives Margin Schedule & Maximum Leverage — Kraken