After earlier this year launching Kraken Prop, a proprietary trading program inside Kraken Pro, crypto platform operator Kraken is doubling down on its retail prop offerings by announcing the launch of Kraken Funded.

Both moves come following Kraken’s acquisition of Breakout, a retail crypto prop trading firm, late last year.

To be honest, we’re not really sure how the Kraken Funded product differs from Kraken Prop. Both appear to be an unregulated service, offered via Payward Oceanic Ltd. (If our readers know the differences between Kraken Prop and Kraken Funded, please let us know in the Comments section below.)

Now available inside the Kraken mobile app, eligible customers have a new way to access larger amounts of trading capital by demonstrating their skill in a challenge-style, sandboxed environment. Instead of requiring a larger deposit, Kraken Funded rewards those who prove they can turn a profit. If you successfully complete the challenge, you’ll receive a funded account backed by Kraken’s capital.

How it works

The idea is simple. Eligible customers pay a one-time entry fee to unlock a skill-based challenge in a simulated environment, with no real capital at risk during the test. Three tiers, three price points to qualify for funded capital:

• Pay $20 to qualify for $1,000
• Pay $50 to qualify for $5,000
• Pay $90 to qualify for $10,000

To pass the assessment, reach a profit target of 12% before losing more than 5%. There is just this one overall drawdown limit of 5%; there is no daily drawdown.

There’s also no countdown clock, either. Kraken Funded lets you trade at your own pace, with no time limit on the challenge or the funded account.

Customers who complete the challenge gain access to  a funded account backed by Kraken’s capital. From there, they can trade across 50+ cryptoassets and select stocks (availability varies by region), from BTC and ETH to a wide selection of altcoins, all from the Kraken app.

What you keep

There are no trading fees on your funded account. 100% of your edge goes toward your performance. Hit your profit target and you keep 80% of the profits. Payouts are processed in USD directly to your Kraken account typically in under 24 hours.

Unlike other trading programs, there are no large upfront capital requirements, no lengthy application processes, and no separate platform to learn. Kraken Funded is designed to be accessible and built directly into the Kraken app, making it easy for eligible customers to get started.

Eligibility

Kraken Funded is live now for eligible customers in more than 150 countries, including the US and EEA. IT will be expanded to more markets in the coming weeks.

FNG asked Kraken customer support to explain the difference(s) between Kraken Funded and Kraken Prop. We were provided with the following response.

Kraken Funded and Kraken Prop are separate funded-trader programs:

– Kraken Funded: a performance-based payout program. The challenge fee is not an investment or deposit and is non‑refundable. Any funded account is provided by Payward Oceanic Ltd (BVI), and your agreement is only with that entity under a Funded Trader Agreement. It’s also described as not a regulated investment product.

– Kraken Prop: a proprietary trading program inside Kraken Pro. You purchase an evaluation, pass risk/profit targets, then get a funded account and can keep up to 90% of profits (per program terms).