A protective stop that rests at the exchange

What the order is

The connected exchange accepts a stop order. You name a stop price and a trigger signal. When the chosen price reaches the stop price, the stop activates. PERP KING sends that order as reduce-only: it can only reduce the position it belongs to. It cannot flip you into a new position on the other side.

The trigger signal is the exchange mark price. On Kraken Futures, Kraken's mark, defined in the linear perpetual specification, is the index plus a 30-second average of the contract's premium, capped at 1% while the index is available. The mark is also what Kraken uses for unrealised profit and for liquidation. Triggering the stop on the mark keeps the stop on the same price the exchange uses to judge the position, rather than on a single last trade that can print far from the book.

The distance from entry to that stop is part of the private decision. This page does not publish it. Size is then taken from your risk per trade and that distance, inside your leverage cap. That relationship is public. The formula for where the stop sits is not.

The sequence

1. The entry fills on a position PERP KING opened.
2. The stop is sent immediately, reduce-only, trigger on mark.
3. If the exchange does not accept it, the position is closed with a reduce-only market order.
4. If protection is later tightened, the new stop is placed before the old one is cancelled, so a resting stop remains during the change.
5. The position can also be closed by an exit before the stop, when the reason for holding it is gone. That exit is a separate order.

This sequence applies to positions PERP KING opens in LIVE. It is not attached to positions you opened yourself, and it is not attached to positions that were already open when LIVE started.

If PERP KING is unreachable

A stop the exchange has accepted does not need PERP KING to stay online in order to trigger. That is the reason it is placed at the exchange rather than only inside our process. New entries are a different matter: LIVE will not open a position from stale or missing data.

Cancelling the trade key at the exchange can prevent new orders. It does not rewind an order the exchange has already accepted. If you want positions closed, use Stop in the terminal while the key still works, or close them at the exchange.

Pause does not remove the resting stop. Stop closes the positions PERP KING opened, which is a market flatten, not a hope that the stop will be the exit.

What it does not guarantee

• A fill at the stop price. The market can gap, and a stop can execute worse.
• Priority over liquidation. If the mark reaches the exchange's liquidation region first, the exchange's procedure runs. See liquidation.
• Protection for any position on the account. Only positions PERP KING opened.
• A floor under the whole wallet. Other positions, funding, and collateral moves still affect equity.

Simulation does not place this order, because Simulation places nothing. Its exit is a modelled price. Do not read a simulated stop fill as evidence of what the exchange would have done.

Questions

Sources

The order type and the mark-price definition are Kraken's. The sequence above is PERP KING's LIVE behaviour.

• Send order — Kraken Futures REST API
• Linear Multi-Collateral Derivatives Contract Specifications — Kraken, last updated 8 September 2026. A separate specification is linked from that page for EEA clients.
• Liquidation FAQ — Kraken Derivatives