What does "account at risk" mean on Kraken futures?

Kraken's "account at risk" warning means your margin level has dropped to 100% or below—act fast by adding funds, reducing leverage, or closing positions to avoid liquidation.

Jul 27, 2025 at 12:43 pm

Understanding "Account at Risk" on Kraken Futures

When Kraken displays the message "account at risk" on its futures trading platform, it means your margin balance has fallen to a level where liquidation is imminent. This is not a warning to be ignored—it indicates that your open positions are close to being automatically closed by the system to prevent further losses. The core reason this appears is when your maintenance margin requirement exceeds your available margin. Kraken calculates this in real time based on your position size, leverage, and current market price.

How Kraken Calculates Risk Level

Kraken uses a metric called the "Margin Level" to determine if your account is at risk. This is calculated as:

Margin Level = (Wallet Balance + Unrealized PnL) / Maintenance Margin Requirement

If your Margin Level drops to ≤ 100%, Kraken flags your account as "at risk." At exactly 100%, you are at the liquidation threshold. Below that, forced liquidation begins. For example, if you have a $1,000 balance, $200 in unrealized losses, and your maintenance margin is $900, your margin level is (1000 - 200) / 900 = 88.9%. This triggers the "account at risk" alert.

What Happens During Forced Liquidation

If your margin level continues to fall after the "at risk" warning, Kraken initiates auto-deleveraging (ADL) or full liquidation depending on the market conditions:

• Your position is partially or fully closed at the best available price
• A liquidation fee (typically 0.5–1%) is charged
• You may owe additional fees if the liquidation price is worse than the bankruptcy price
• All open orders tied to that position are canceled automatically
  

  This process is irreversible—once liquidated, your position is gone, and you cannot recover it by depositing more funds afterward.

  Step-by-Step: How to Resolve "Account at Risk"

  
  To prevent liquidation when you see this warning, act immediately:
• Check your open positions: Go to the "Futures" tab → "Positions" to see which contracts are in danger
• Add margin manually: Click "Add Margin" on the specific position and deposit more USDT, BTC, or ETH into that position’s margin wallet
• Reduce leverage: Lower your leverage from 10x to 5x or 3x to decrease your maintenance margin requirement
• Close part of the position: Partially exit your trade to free up margin and reduce exposure
• Monitor real-time PnL: Keep an eye on the unrealized profit/loss column—this updates every few seconds
  

  Each of these actions recalculates your margin level instantly. You must bring it back above 100% to clear the "at risk" status.

  Differences Between Isolated and Cross Margin Modes

  
  Kraken supports both isolated and cross margin for futures:
• In isolated margin, each position has its own dedicated margin. If one position is at risk, others are unaffected
• In cross margin, your entire wallet balance is used as collateral. A losing position can drain funds from other trades
  

  If you're using cross margin and see "account at risk," it means your total wallet value is insufficient to cover all positions. You must either deposit more funds or close profitable positions to free up margin for the losing one.

  Common Causes of "Account at Risk"

• Sudden price volatility (e.g., BTC drops 5% in minutes)
• High leverage (10x or more) on a volatile asset
• Holding a position overnight during low liquidity periods
• Not setting stop-loss orders or trailing stops
• Using cross margin with multiple open positions that move against you simultaneously
  

  These are not bugs—they are normal risk management mechanisms. Kraken’s system is designed to protect both users and the exchange from negative equity.

  Frequently Asked Questions

  Q: Can I still trade if my account is at risk?
  
  Yes, but with restrictions. You cannot open new positions in the same margin mode (isolated or cross) until the risk is resolved. You can, however, deposit funds or close existing positions.

  Q: Does Kraken notify me before liquidation?
  
  Kraken does not send email or SMS alerts by default. You must enable push notifications in your account settings under "Security" → "Notifications." Even then, the alert may arrive too late—monitor your margin level manually.

  Q: Why did my account show "at risk" even though I had funds in my wallet?
  
  This happens in cross margin mode when your total wallet balance is spread thin across multiple positions. One losing trade can consume margin allocated to others, triggering the alert even if your total balance seems sufficient.

  Q: Is "account at risk" the same as being liquidated?
  
  No. "At risk" means you are close to liquidation but still have time to act. Liquidation occurs when your margin level falls below 100% and no action is taken. Once liquidated, your position is closed automatically.