I noticed that kraken charges hourly interest from my futures position – in addition to the normal funding rates. On some other exchanges I haven’t had similar charges, also I think this is relatively new thing on kraken. It is clearly based on PnL and it goes higher the lower your position goes.

I’m not accusing kraken on anything illegal, but to me these fees are really easy to miss and they can get very high!

It only gets charged when my position goes below zero. If I close my position and then reopen it, the interest charge should be removed I guess – I might go this route but at this point I’m seriously thinking about going to a competing exchange.

I somehow missed this. In my view this is pretty fucked up, since the charges are pretty crazy, easy to miss from the documentation and I haven’t heard about similar on other exchanges! Totally way higher than normal lending rates on let’s say stock exchanges.

The documentation only gives hourly rates, I think to cover for the fact that these rates are very high. AI-calculated APR rates here:

Uncovered loss tier Hourly rate Simple APR $0 – $100k 0.0025% 21.9% $100k – $500k 0.0050% 43.8% $500k – $1M 0.0075% 65.7% $1M – $2.5M 0.0100% 87.6% $2.5M – $5M 0.0125% 109.5%

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