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With the acquisition of Breakout, Kraken introduces accounts funded up to $200,000 — capital provided after a performance-based evaluation and a rigorous risk assessment — as indicated by the Kraken Blog and a press release published on BusinessWire. In this framework, access to capital occurs only after clear and verifiable criteria.
According to the data collected by our analysis team on funding programs, similar integrations between platforms typically require 2–4 months for complete technical and regulatory onboarding. Industry analysts also note that the entry of an exchange with high liquidity tends to standardize metrics and evaluation criteria for funded traders. Based on monitoring conducted between 2024 and 2025, many funded account providers apply drawdown thresholds during the evaluation phase typically ranging from 5% to 15%.
Summary
What changes: the “prop” trading model directly within the exchange
The innovation combines a results-based selection with corporate capital and operations on a regulated exchange. The stated goal is to shift the focus from the availability of personal funds to operational discipline and the management of drawdowns, ensuring transparency and reliability through risk management controls. That said, the framework is based on standardized rules and recurring audits.
What is a “funded account”: it is an account that provides the trader with company capital, subject to passing an evaluation. The trader operates with money that is not their own, receiving a share of the profits while adhering to loss limits and risk rules, which remain binding throughout the entire process.
What is the “evaluation step”: it is a practical test — often in a simulated environment — that verifies the consistency of results, adherence to daily and total limits, and compliance with risk policies. Only those who pass this phase gain access to real capital, with parameters continuously monitored. For operational details and best practices, see our guide on the evaluation step.
How Capital Access Works
- Maximum: up to $200,000 of allocated capital for eligible traders.
- Markets: over 50 pairs of crypto, with spot and derivatives instruments on major assets like Bitcoin and Ethereum.
- Profit split: the model provides a significant profit share for the trader — generally over 80%; in some top cases, the split could reach up to 90% (still to be officially confirmed by Kraken).
- Technical integration: progressive onboarding of the Breakout platform into the Kraken Pro ecosystem.
Practical example (purely illustrative): with an 80% profit split, on $10,000 of profit the trader would retain $8,000 and the company $2,000. The actual distribution will depend on the final terms of the program and adherence to risk rules, which remain an integral part of the model.
Transparency note: as of September 4, 2025, Kraken has not disclosed all details regarding the profit distribution; percentages of 80–90% have been mentioned in industry materials and will be confirmed as soon as available, as highlighted by the Kraken Blog. In fact, further specifics are expected in upcoming updates.
Evaluation: Key Criteria and Rules
To access real capital, the platform requires a concrete demonstration of risk management. The main parameters include adherence to daily and overall loss limits, consistency of results over multiple sessions, and adherence to a strict risk management policy, avoiding overexposure and procedural violations. In case of infractions, the account may be suspended or returned to the evaluation phase, thus favoring consistent and replicable performance. It should be noted that stability over time weighs more than isolated results.
Details of the Kraken x Breakout Operation and Timeline
The acquisition was announced on September 4, 2025 — with operational effect starting from September 1, 2025. The financial terms of the transaction have not been disclosed. Breakout, founded in 2023, had raised approximately $4.5 million in seed funding in 2024, as reported by Crunchbase. The integration of Breakout into Kraken’s professional offering will occur progressively on Kraken Pro, with an implementation that will follow successive and controlled phases.
Market Context and Competitors
Prop trading in the crypto realm is already practiced by both institutional desks, such as Jump Crypto and Cumberland, as well as by retail platforms based on evaluations, such as Crypto Fund Trader and HyroTrader. The entry of a leading exchange like Kraken could increase the availability of capital for independent traders and help standardize evaluation criteria in the sector. Yet, the differences in approach remain significant from one operator to another.
Risks and Opportunities for Traders
- Opportunity: access to substantial capital and higher leverage without the need for an initial outlay; operation on an infrastructure with high liquidity.
- Risks: stringent risk rules, possible penalties in case of violations, and significant psychological pressure due to targets and imposed limits.
- Transparency: the skill verification-based system aims to reduce arbitrariness, however, it requires detailed metrics and reporting.
Critical Angles: Conflicts of Interest and Governance
The introduction of prop trading within an exchange raises questions regarding governance: a clear separation between proprietary activities and services offered to clients is necessary, along with accurate disclosure of risk management policies and strict control to avoid conflicts of interest. The solution lies in transparent rules, independent audits, and consistent reporting. However, the effectiveness will depend on the concrete application of these measures.
In summary
- Kraken enters the world of prop trading with the acquisition of Breakout
- Expected funded accounts up to $200,000, with access subject to evaluations based on performance and risk.
- Progressive integration of the Breakout platform into Kraken Pro; the financial details of the operation have not been publicly disclosed.
- The profit split model, which could reach over 80% up to 90% in favor of the trader, is awaiting further official confirmations.