krakenfx/kraken-cli/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 of the multi-collateral account, under .accounts.flex:

• marginEquity: account value that counts as margin, unrealized P&L included
• initialMargin: margin held for positions
• maintenanceMargin: minimum margin before liquidation
• availableMargin: free margin for new positions

Margin ratio = .accounts.flex.maintenanceMargin / .accounts.flex.marginEquity. Liquidation approaches as this ratio nears 1.0. A single-collateral account (.accounts.fi_*) reports maintenance margin, portfolio value and available funds as marginRequirements.mm, auxiliary.pv and auxiliary.af.

Alert Thresholds

Monitoring Loop

kraken futures ws balances -o json 2>/dev/null | while read -r line; do
  # Read margin equity and maintenance margin from the frame
  # 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> --type market --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+.
• Margin top-ups move funds: futures transfer and wallet-transfer are flagged dangerous and need human approval.
• Never increase position size when margin ratio is above 0.3.
• futures set-leverage is flagged dangerous: it changes the margin requirement on open positions, so de-risking with it needs the same human approval as flattening.
• If you hit a mismatch between what you are trying to do and the CLI's interface or responses — including a mismatch between this skill and the installed CLI version's contract — feel free to submit feedback with kraken feedback.