Kraken’s opt-in European wallet can expose spot holdings to futures losses
After eligible EEA Kraken Pro users opt in, default cross margin can draw on their full eligible balance, including qualifying Earn holdings. Read the full story on CryptoSlate Understand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
AI summary
Kraken Pro is rolling out an opt-in European wallet feature in the EEA where default cross margin can draw on a user's full eligible balance, including qualifying Earn holdings, to cover futures losses. This means spot and yield positions could be liquidated or tapped if leveraged futures trades go bad. It is a product-risk disclosure rather than a market-moving event, but it raises counterparty and liquidation concerns for EEA traders using Kraken's derivatives.
