What happens during a platform outage on Kraken?

Understanding Platform Outages on Kraken

A platform outage on Kraken refers to a period when users are unable to access certain or all services provided by the exchange. This may include inability to log in, trading disruptions, delays in deposits or withdrawals, or errors when placing orders. These outages can stem from various causes such as server overloads, scheduled maintenance, network infrastructure issues, or unexpected technical failures. During such events, the Kraken status page (status.kraken.com) typically reflects the current operational state of different services, categorizing them as Operational, Degraded, or Down.

When an outage occurs, user-facing applications—including the web platform, mobile apps, and API endpoints—may respond slowly or not at all. The exchange may display error messages such as 'Service Unavailable', '502 Bad Gateway', or 'Unable to process your request'. Despite the temporary unavailability, user funds remain secure because Kraken stores the majority of assets in cold wallets that are not connected to the internet, minimizing exposure to potential exploits during downtime.

How Kraken Responds to Service Disruptions

Kraken operates a dedicated incident response team that monitors system performance around the clock. When an anomaly is detected, engineers initiate diagnostic protocols to isolate the root cause. This may involve reviewing server logs, analyzing network traffic patterns, or checking database integrity. If the issue is related to high traffic volume, the team may implement rate limiting or temporarily restrict non-essential features to preserve core trading functionality.

In cases involving scheduled maintenance, Kraken typically announces the downtime window in advance through email notifications, in-app alerts, and social media updates. Maintenance often includes security patching, database optimization, or infrastructure upgrades. Unscheduled outages, however, are addressed with real-time status updates on the official status page, where each affected component is tracked individually. The engineering team works to restore services in order of criticality, prioritizing order matching engines, wallet systems, and authentication servers.

Impact on Trading and Orders During Downtime

During an outage, active trading is usually suspended. Any pending limit or market orders that were not processed before the disruption may remain in a queued state or be automatically canceled, depending on the nature of the failure. If the matching engine goes offline, new orders cannot be executed, and users may see 'Order Failed' messages. However, filled orders prior to the outage remain valid and are reflected in the account history once services resume.

It is important to note that stop-loss and take-profit orders may not trigger during outages if the price feed or execution system is unavailable. This creates a risk known as execution slippage, where the market moves significantly before the platform recovers. Traders are advised to avoid placing time-sensitive orders during known maintenance windows or periods of high volatility that could strain the system.

Deposits, Withdrawals, and Wallet Services

When Kraken experiences an outage, deposit and withdrawal functions are often among the first services to be affected. Users may encounter messages such as 'Withdrawal temporarily disabled' or 'Deposit address not available'. This is a protective measure to prevent transaction mismatches or loss of funds due to incomplete blockchain confirmations.

• If a crypto deposit is sent during an outage, it will still be recorded on the blockchain. Once Kraken’s wallet systems are back online, the deposit will be credited automatically after the required number of confirmations.
• For withdrawals, any request submitted just before or during downtime may be queued or rejected. If rejected, the funds remain in the user’s account. If processed after recovery, the transaction will appear in the withdrawal history with a delayed timestamp.
• Fiat withdrawals (e.g., USD, EUR) may also be delayed, especially if they rely on third-party banking APIs that are synchronized with Kraken’s internal systems.

Users should verify transaction status after service restoration and contact support only if a deposit or withdrawal does not reflect within the expected timeframe.

API Access and Automated Trading Systems

Many traders rely on Kraken’s REST and WebSocket APIs for algorithmic trading, portfolio monitoring, or arbitrage strategies. During an outage, API endpoints may return HTTP 500 errors, timeout responses, or empty JSON payloads. Automated scripts that do not include error handling may crash or enter infinite retry loops, potentially leading to rate limit bans.

To mitigate risks, developers should implement the following safeguards:

• Use try-catch blocks to handle API exceptions gracefully.
• Incorporate exponential backoff mechanisms when retrying failed requests.
• Monitor the Kraken Status API (https://status.kraken.com/api) to programmatically detect service degradation.
• Store local copies of order books or account balances to maintain context during brief disruptions.

Kraken’s API rate limits remain enforced during partial outages, so excessive polling can result in temporary IP bans. Developers are encouraged to use WebSockets for real-time data instead of frequent REST polling, reducing load on both client and server.

User Actions and Best Practices

While Kraken manages the technical response, users can take steps to minimize inconvenience:

• Regularly check the official status page before executing critical transactions.
• Enable two-factor authentication (2FA) via authenticator apps rather than SMS, as SMS delivery may be disrupted during network issues.
• Avoid panic selling or buying immediately after service restoration, as order backlogs can cause temporary price anomalies.
• Keep recovery phrases and backup codes secure, as customer support may experience delays during widespread outages.

  If login issues persist after the status page indicates recovery, users should clear browser cache, disable ad blockers, or try alternate devices before contacting support.

  Frequently Asked Questions

  Are my funds safe during a Kraken outage? Yes. User funds are not at risk during outages because Kraken uses cold storage for 95% of crypto assets. Even if the website is down, blockchain transactions remain immutable and secure.

  Will my open orders be lost if Kraken goes down?Not necessarily. Orders stored on the matching engine are typically preserved if the database remains intact. However, orders submitted during downtime may fail. Check your order history after services resume.

  How can I get real-time updates during an outage?Follow @krakenfx on X (Twitter) and visit status.kraken.com. These channels provide live incident reports, estimated resolution times, and service restoration confirmations.

  Can I still access my account via the mobile app during an outage?No. The mobile app relies on the same backend servers as the web platform. If Kraken’s API is down, both mobile and web interfaces will be inaccessible.