Trade SpaceX at up to 5x leverage before the IPO: the Kraken SPCX pre-IPO perp is now live

TL;DR

• Kraken has listed a pre-IPO perpetual on SPCX (Space Exploration Technologies Corp., or “SpaceX”), so you can go long or short on SpaceX exposure before it goes public.
  
• Trade with up to 5× leverage and multi-collateral (flex) margin, with no expiry. Not available in the US, EEA, Canada, Australia, or New Zealand.
  
• Pricing uses a purpose-built Kraken PreMarket Synthetic index that is smoothed and tightly bounded, designed to resist flash liquidations in a thin, early market.
  
• If and when SpaceX completes an IPO, Kraken intends to convert the contract to standard tokenized-equity-style pricing, and contract specifications are expected to change.

What is the SPCX pre-IPO perpetual?

SpaceX is one of the most valuable private companies in the world, but its shares are not yet publicly traded. The SPCX pre-IPO perpetual (PF_SPCXXUSD) is a cash-settled perpetual contract that lets you express a view on SpaceX’s value today, without waiting for an IPO:

• Go long if you expect SpaceX’s valuation to rise into and beyond a public debut.
• Go short to hedge or take the other side.
• No expiry, so you can hold for as long as you like, subject to margin.
• Multi-collateral margin, so the contract is settled and margined in Kraken’s flex account and a wide range of assets can back your position.

How Kraken prices a company that isn’t public yet

Because there is no public SpaceX stock and no external index, Kraken prices this contract with a purpose-built pre-IPO pricing engine:

• Synthetic index: The Kraken PreMarket Synthetic index derives the reference price from the contract’s own market, rather than from an external feed that does not yet exist.
• Smoothing: The index is exponentially smoothed, so short-lived spikes in a thin order book have little effect on it. Price discovery is intentionally measured.
• Mark-price clamp: The contract’s mark price is held to within ±0.25% of the synthetic index at all times. Even on a thin book, that band is designed to stop momentary spikes from forcing liquidations: a brief shock moves the mark only fractionally, while a sustained move is followed in an orderly way over minutes rather than seconds.

How a pre-IPO perp differs from a standard Kraken perpetual

• Pricing source: A synthetic, smoothed, and clamped index, rather than an external spot index.
• Funding: Structurally small during the pre-IPO phase, because the mark is held close to the index by the ±0.25% band. A standard perpetual instead tracks an external spot price.
• Liquidity: Early markets may be thin, and spreads can be wider than on mature contracts. The smoothing and clamp design exists to keep that early phase orderly.
• Conversion at IPO: Specifications are expected to change if and when SpaceX goes public (see below).

Contract specifications

What happens when SpaceX goes public?

When SpaceX completes its IPO, Kraken intends to transition PF_SPCXXUSD pricing from the synthetic index to the SpaceX xStocks tokenized equity spot index with normal funding. Contract specifications, including initial margin, maintenance margin, position limits, and funding, are expected to change at that point. Kraken will share the full conversion details and timing ahead of any changes.

Payward Digital Solutions Ltd. is licensed to conduct digital asset business by the Bermuda Monetary Authority. Trading futures, derivatives and other instruments using leverage involves an element of risk and may not be suitable for everyone. Read Kraken Derivatives’ risk disclosure to learn more.

xStocks are issued by Backed Assets (JE) Limited (a Jersey private limited company) and offered to eligible Kraken customers via Payward Digital Solutions Ltd. (“PDSL”), a company licensed to conduct digital asset business by the Bermuda Monetary Authority. xStocks are not nor will be registered with any local securities regulators. PDSL (Kraken) does not provide investment advice and/or recommendations, and, no communication, through any Kraken App or website or otherwise, should be construed as such. Individual investors should make their own decisions or seek professional independent advice if they are unsure as to the suitability/appropriateness of any investment for their circumstances or needs, including potential tax treatment. Investing in xStocks involves an element of risk. The value of an investment may go down as well as up, and past performance is not a reliable indicator of future results. Not available in the US or to US persons. Geo restrictions apply. Read Kraken’s xStocks Risk Disclosure at kraken.com/legal/xstocks as well as the Base Prospectus and related Final Terms for xStocks at https://assets.backed.fi/legal-documentation to learn more.

Highly speculative and volatile: Pre-IPO perpetuals are speculative instruments
and can move sharply. You can lose your entire margin and, with leverage,
losses can exceed your initial deposit.

Liquidation & auto-deleveraging: Leveraged positions can be liquidated. As with
all Kraken derivatives, auto-deleveraging may occur; for a speculative pre-IPO
contract this likelihood may be higher than for a mature contract.

No IPO / pricing unavailable: If a SpaceX IPO does not occur, or a reliable index
price otherwise becomes unavailable, Kraken reserves the right to delist and
settle the contract at a value determined by Kraken in accordance with its rules.

Conversion risk: At the point of conversion to a post-IPO contract, the prevailing
pre-IPO mark may differ materially from the IPO/listing price, and there may be
significant volatility.

Specification changes: Contract specifications (margins, limits, funding) are
expected to change on conversion and may be adjusted by Kraken.

Not investment advice: This is informational only and not an offer, solicitation, or
recommendation. Products and leverage are not available in all jurisdictions.

No affiliation: SPCX / SpaceX names and marks are used for identification only;
Kraken is not affiliated with, endorsed by, or sponsored by Space Exploration
Technologies Corp.

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