krakenfx/kraken-liquidation-guard

kraken-liquidation-guard

Use this skill for:

• monitoring margin ratio to detect liquidation risk
• automated position reduction when thresholds are breached
• emergency flatten procedures
• proactive margin top-up patterns

Margin Health Check

kraken futures accounts -o json 2>/dev/null

Key fields:

• equity: total account value
• initialMargin: margin held for positions
• maintenanceMargin: minimum margin before liquidation
• availableFunds: free margin for new positions

Margin ratio = maintenanceMargin / equity. Liquidation approaches as this ratio nears 1.0.

Alert Thresholds

| Ratio | Status | Action | |-------|--------|--------| | < 0.3 | Healthy | Normal operation | | 0.3 - 0.5 | Caution | Reduce position or add margin | | 0.5 - 0.7 | Warning | Reduce position immediately | | > 0.7 | Critical | Emergency flatten |

Monitoring Loop

kraken futures ws balances -o json 2>/dev/null | while read -r line; do
  # Parse equity and maintenanceMargin
  # Calculate ratio
  # Alert or act when threshold is breached
done

Or poll periodically:

kraken futures accounts -o json 2>/dev/null

Unwind Queue Check

If a position enters the unwind queue, liquidation is imminent:

kraken futures unwind-queue -o json 2>/dev/null

Any result here requires immediate action.

Emergency Flatten

Cancel all open orders, then close all positions:

# Cancel all orders to free held margin
kraken futures cancel-all --yes -o json 2>/dev/null

# Close each position with reduce-only market orders
kraken futures positions -o json 2>/dev/null
# For each position:
kraken futures order sell PF_XBTUSD <SIZE> --reduce-only -o json 2>/dev/null

Margin Top-Up

Transfer funds from spot wallet to futures to increase margin:

kraken futures transfer 5000 USD -o json 2>/dev/null

Or from main account:

kraken wallet-transfer USD 5000 --from <SPOT_IIBAN> --to <FUTURES_IIBAN> -o json 2>/dev/null

Leverage Reduction

Lower leverage to reduce margin requirements:

kraken futures set-leverage PF_XBTUSD 2 -o json 2>/dev/null

Dead Man's Switch

Always run a dead man's switch during futures sessions:

kraken futures cancel-after 600 -o json 2>/dev/null

If the agent crashes, orders auto-cancel, preventing further margin consumption.

Hard Rules

• Monitor margin ratio continuously during any futures session.
• Alert at 0.5 ratio; act at 0.7. Do not wait for the exchange to liquidate.
• Emergency flatten requires human approval unless the agent operates at autonomy level 4+.
• Never increase position size when margin ratio is above 0.3.