TL;DR
- Kraken Borrow US is now available in 48 states, giving eligible US customers the ability to buy more crypto than their available USD balance.
- Your cash goes first: the borrowed portion only covers the amount over your cash balance, with total buying power up to 3x the value of your eligible assets.
- Every cost is visible before you confirm: trade fee, borrow fee, and daily interest.
- Spot margin trading involves substantial risk. Losses may exceed your initial investment.
Today we’re launching Kraken Borrow US in 48 states (New York and Maine excluded). Eligible US customers can now spend more than their cash balance when buying crypto, on CFTC-regulated rails.
One number tells you what you can spend: your USD balance plus what you can borrow, based on your eligible assets. Buy, and your cash goes first. If you want more than your balance allows, your buying power covers the rest.
Your cash goes first
A purchase within your USD balance works like any other trade with us. Nothing is borrowed. The borrowed portion only activates when you want to buy beyond what you hold.
Behind any purchase that exceeds your USD balance, two transactions run: a regular spot trade using your cash, and a second transaction for the borrowed portion on CFTC-regulated rails.
Your buying power is up to 3x the value of your eligible assets.
At launch, Kraken Borrow US supports 27 trading pairs on Bitnomial, all at the same 3x cap. Over 48 assets count as eligible collateral toward your buying power.
Everything you need to know before you confirm
Before any purchase completes, one review screen shows you:
- The total purchase amount
- The price you’ll pay
- The trading fee (waived for Kraken+ members*)
- The borrow opening fee
- Your daily interest cost
Repay on your terms
No repayment deadline. No minimum payment. Repay from the Borrow Center whenever you’re ready:
- Pay with USD: free, anytime
- Pay by selling any asset you hold: a conversion fee applies
The crypto purchased with borrowed funds is locked as security until you repay. You can see it and sell it from within Kraken, but it can’t leave the platform while a balance is outstanding.
Borrow health
Your account shows a borrow health status at all times: Healthy, Caution, or At risk. If your asset values fall enough to threaten the position, we’ll issue a warning. If the position deteriorates further, some of your crypto may be sold automatically to cover what you owe.
Getting started
The first time you buy beyond your cash, you’ll set this up once. Review the disclosures, e-sign to open your Kraken Derivatives US account, and your buying power is live. Your existing verified details carry over.
Kraken Borrow US is available in 48 states. It is not available in New York or Maine, or to those with over $10 million in total investments under applicable commodities law.
Check your buying power right in the buy flow when purchasing any eligible asset, on the buying power card on your portfolio page, or click below to check in the Borrow Center.
*Up to $10k in trading volume per month. Cancel Kraken+ anytime. Subscription benefits vary by region. Other fees may apply.
Losses can exceed your initial investment. Additional collateral may be required.
Kraken Borrow US, Kraken Borrow, and Kraken Flexline are separate products subject to terms and conditions and geo restrictions.
Kraken Borrow US combines two transactions: a spot trade using U.S. dollars, provided by Payward Interactive, Inc. d/b/a Kraken (“PWI”), and a spot margin trade for the borrowed portion, offered through NinjaTrader Clearing, LLC d/b/a Kraken Derivatives US (“NTC”), a CFTC-registered Futures Commission Merchant and NFA Member (NFA ID: 0309379), with financing provided by an affiliated lender. View Kraken Disclosures and NTC Disclosures.
Spot and spot margin trading involves substantial risk and is not suitable for everyone. You may lose all or more than the initial investment, exceeding the value of collateral deposited with the firm to open and maintain the position. You may be required to provide additional collateral on short notice or no notice, and you may remain responsible for any deficiency after liquidation and collateral application. Trading should be undertaken only with risk capital—funds that can be lost without jeopardizing one’s financial security or lifestyle—and only by those who can afford such losses. While leverage can increase potential returns, it also significantly increases risk. Leverage available may vary by asset. Past performance is not necessarily indicative of future results. Availability of spot margin trading through Kraken Derivatives US is subject to certain limitations and eligibility criteria. View Spot Margin Risk Disclosure Statement.
The post Spend more than your cash balance: introducing Kraken Borrow for US customers appeared first on Kraken Blog.
