Kraken Launches Funded Trading Program With 80% Profit Split
Kraken announced Kraken Funded, a program that provides trader access to the exchange's capital for trading, allowing participants to retain 80% of profits. The offering aims to lower barriers to entry for active traders without substantial personal capital.
Key Takeaways
- 1## New Capital Access Program Kraken introduced Kraken Funded, a program that supplies trader access to exchange-provided capital for trading on its platform.
- 2Participants keep 80% of profits generated from trades made with the provided capital, with Kraken retaining 20%.
- 3The program is designed to reduce the capital constraint for traders who have trading skill but limited personal funds.
- 4## How It Works According to Kraken's announcement, the program targets active traders and market participants who believe they can generate returns but lack sufficient capital to do so independently.
- 5By providing access to Kraken's balance sheet, the exchange attempts to democratize access to larger trading positions.
New Capital Access Program
Kraken introduced Kraken Funded, a program that supplies trader access to exchange-provided capital for trading on its platform. Participants keep 80% of profits generated from trades made with the provided capital, with Kraken retaining 20%. The program is designed to reduce the capital constraint for traders who have trading skill but limited personal funds.
How It Works
According to Kraken's announcement, the program targets active traders and market participants who believe they can generate returns but lack sufficient capital to do so independently. By providing access to Kraken's balance sheet, the exchange attempts to democratize access to larger trading positions. The profit-split model aligns incentives between the platform and participating traders.
Why It Matters
For Traders
A new source of leverage without borrowing; traders who pass any qualification screen gain access to additional capital with a 20% performance fee structure.
For Investors
Kraken generates fee revenue from trader profits without direct loan or counterparty risk, adding a new revenue stream tied to platform activity.
For Builders
Competitors may need to offer similar capital-access programs to retain active trading flow; this shifts competitive dynamics beyond trading fees.
