TL;DR:
- Kraken launched a five-tier liquidity program for Spot, Futures, and xStocks, with rebates of up to -0.020% at the highest level.
- Qualification is based on the 30-day Maker Contribution Share, not a fixed notional volume, removing barriers for mid-sized traders.
- From LP 3 onward, participants can access institutional credit lines, with two annual exceptions and a two-month grace period.
The exchange Kraken formalized its liquidity provider program with a five-tier structure spanning three product verticals: Spot, Futures, and xStocks. The system replaces the traditional fixed notional volume logic with a relative participation-based scheme, a significant methodological shift for the institutional market making industry.
The core of the program is the Maker Contribution Share (MCS): the percentage of the exchange’s total maker volume that each participant represents, measured over a 30-day rolling window. A mid-sized trader active in a less liquid market can reach a threshold below 1% of participation and access a meaningful tier without needing to match the flow of the largest players in the market.
Kraken: A Ladder for Traders of All Sizes
Rebates improve at each step of the ladder: up to -0.005% on Spot, -0.006% on Futures, and -0.020% on xStocks at the highest tier. Qualification operates independently by product: reaching the threshold in Futures grants the corresponding tier even if Spot activity is low, and vice versa. All three markets feed into a single tier progression, with no separate ladders per vertical.
Kraken’s program incorporates three tolerance mechanisms. At launch, the initial classification is calculated based on total historical volume, not the 30-day rolling window, granting two months of grace for prospective participants to stabilize their position. Additionally, two performance exceptions per calendar year are allowed: requested before the end of the period, the exception extends the evaluation by 30 additional days and preserves the tier without penalty.
Credit Access From LP 3 Onward
From the third tier onward, participants can access institutional credit lines, a benefit that most competitor programs do not integrate directly into the tier structure. The specific terms are negotiated bilaterally with Kraken‘s institutional team, but require no separate arrangements: access derives automatically from the tier reached.
New applicants can request a one-week trial at LP 3 before committing to the formal ladder. Performance during that period determines the actual entry tier, with no long-term lock-ins or additional complexity. Kraken noted that it has operated in the market for 15 years and that the program does not respond to a promotional cycle, but rather to a structural incentive policy for deep and consistent liquidity provision.
