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CRYPTOPRU K-factor mapper

Eight K-factors, of which five are a coefficient on a measured volume and three are models you cannot reduce to a percentage. Tick the activities and see which apply, what each is calculated on, and which ones need work rather than arithmetic.

PS26/12 final rules · K-RCS · K-CCS · K-CCO · K-CTF · K-SII · plus three model-based factors

Map your K-factors

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Select the activities the entity carries on. The K-factor requirement is the sum of the applicable factors — unlike the permanent minimum requirement, which is the highest single amount.

Activities and exposures

PS26/12 Chapters 3–4
Select all that applyTrading book positions and counterparty exposures are separate questions from the activity permissions.

Optional — size the coefficient factors

Leave blank to see the mapping only
Average RCS — cryptoassets safeguardedK-RCS · 0.04%
Average CCS — client cryptoassets stakedK-CCS · 0.04%
Average CCO — client cryptoasset ordersK-CCO · 0.1%
Average CTF — cryptoasset trading flowK-CTF · 0.1%
Stablecoin issuance baseK-SII · 1%Reduced from a proposed 2% in the final rules.
What this means: a mapping of activities to K-factors, and arithmetic only for the five factors that are a coefficient on a measured volume. K-NCP, K-CCD and K-CON are models — they depend on position categories, exposure values, netting and collateral, and no percentage substitutes for them. The measurement bases themselves (what counts as RCS, CCO or CTF, and over what window) are defined in the rules and are not modelled here. Own funds are the higher of the PMR, the FOR and the total K-factor requirement. These are final rules applying to firms authorised on or after 25 October 2027. This is not advice.

Five coefficients and three models is not a spreadsheet. The capital module measures the bases, applies the factors and keeps the K-factor sum against the PMR and FOR — with free monitoring to start.

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The set

Five coefficients, three models

The distinction matters more than the individual numbers. A tool that presents all eight as percentages is wrong about three of them.

0.04%

K-RCS and K-CCS

Cryptoassets safeguarded, and client cryptoassets staked. The FCA notes that at 0.04% K-RCS may not be the binding component — a custody business will often find the fixed overheads requirement bites first.

0.1%

K-CCO and K-CTF

Client cryptoasset orders and own cryptoasset trading flow. The same tenfold relationship to the safeguarding factors that K-COH and K-DTF have to K-ASA under MIFIDPRU.

1%

K-SII

Stablecoin issuance, the operational risk factor for issuers. Halved from the proposed 2% in the final rules, so any model built from CP25/15 or CP25/42 overstates it twofold.

Models

K-NCP, K-CCD, K-CON

Net cryptoasset position, cryptoasset counterparty default and concentration risk. Position categories, exposure values, netting and collateral. No coefficient substitutes for the calculation.

Rules reviewed 21 August 2026 · PS26/12, rules 4.5.1R, 4.6.1R, 4.7.1R and the K-CTF rule · K-NCP at §3.55–3.85, K-CCD at §3.86–3.98, K-CON in Chapter 4

Naming

K-QCS became K-RCS, and the base widened

Not just a relabel

The glossary carries both names: K-QCS, K-factor for Qualifying Cryptoasset Safeguarding, and K-RCS, K-factor for Cryptoassets Safeguarded. The rules use K-RCS. The change reflects the perimeter extension to safeguarding both qualifying cryptoassets and specified investment cryptoassets, so the older name understates what the factor is measured on. A model carrying K-QCS is not merely using an out-of-date label — it is likely measuring a narrower base.

Permanent minimum requirement

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Every figure is evaluated on your own machine. Nothing is sent to REGREP, written to a log, saved to a database, or passed to any analytics tool.

That is deliberate. Your volumes and exposures are not something we want to hold.

Questions

About the K-factors

Is the K-factor requirement the sum or the highest?

The sum. Every applicable K-factor is calculated and added together to give the K-factor requirement. That is the opposite of the permanent minimum requirement, where several applicable amounts resolve to the highest single one. Confusing the two produces an error in whichever direction the firm's mix happens to point.

Why can't you calculate K-NCP, K-CCD and K-CON here?

Because they are not coefficients on a volume. Net cryptoasset position depends on position categories and their treatment in the trading book; cryptoasset counterparty default depends on exposure values, netting and collateral; concentration risk depends on exposures to individual counterparties against own funds. Each needs inputs this tool does not collect, and a percentage presented in their place would be a fabrication.

What changed between consultation and final rules?

Three substantive changes: the K-factor for issuing qualifying stablecoins, the net cryptoasset position factor, and consequentially the cryptoasset counterparty default factor. Concretely, K-SII halved from 2% to 1%, and the safeguarding factor was renamed from K-QCS to K-RCS with a wider measurement base.

Do the coefficients mirror MIFIDPRU?

The structure does. Safeguarding factors sit at 0.04% and flow factors at 0.1%, the same tenfold relationship K-ASA has to K-COH and K-DTF in the investment firm regime, and the own funds test is the same three-way higher-of. The factors themselves are crypto-specific and the measurement bases differ, so the familiarity is in the shape rather than the numbers.

Is K-RCS usually the binding factor for a custodian?

Often not. The FCA observes that at a coefficient of 0.04%, K-RCS may not be the binding component of a firm's requirement. For a custody business with a substantial cost base the fixed overheads requirement will frequently exceed it, which is why all three measures have to be calculated rather than assuming the activity-based one dominates.

When does this apply?

The rules were published on 30 June 2026 and apply to firms authorised under FSMA on or after 25 October 2027, with the permissions gateway opening in September 2026. Non-Handbook guidance on the overall risk assessment in Chapter 7 was still in consultation when these rules were made.

Five you can multiply. Three you have to model.

Create a free account and hold the measurement bases, the K-factor sum, the FOR and the PMR together.

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