Dashboard and funds calculation flow on Kite

Wed, 20 May 2026 00:00:00 +0000

The Kite funds page summarises in a few headline numbers what is actually a multi-step calculation involving cash balances, pledged collateral, open positions’ margin requirements, and intraday P&L. This article walks through the flow Kite follows from start to finish.

Inputs

The calculation starts with:

Cash balance in the Zerodha trading account.
Collateral value from pledged equity (haircut-adjusted).
Collateral value from pledged liquid funds (haircut-adjusted).
Open positions with their current SPAN + Exposure margin requirements.
Option premium credits received (and not yet paid back via close).
Intraday P&L (realised and unrealised).
MTM impact from holdings (Day’s P&L on CNC delivery).

Step-by-step flow

Step 1: total resources

Total resources = Cash + Pledged equity collateral (haircut-adjusted) + Pledged liquid fund collateral (haircut-adjusted).

How margin penalty is calculated

Wed, 20 May 2026 00:00:00 +0000

Margin shortfall penalty in India is calculated per SEBI’s framework as a percentage of the shortfall, charged daily for each day the shortfall persists.

Rate table

Shortfall criteria	Penalty rate
Less than Rs 1 lakh AND less than 10% of margin	0.5% per day
Equal to or above Rs 1 lakh OR 10% to 25% of margin	1% per day
Above 25% of margin	5% per day (escalates)

Worked examples

Example 1: small shortfall

Margin required: Rs 5 lakh.
Margin held: Rs 4.7 lakh.
Shortfall: Rs 30K (6% of margin; less than Rs 1 lakh).
Penalty: 0.5% per day = Rs 150 per day.
Over 5 days: Rs 750.

Example 2: medium shortfall

Margin required: Rs 10 lakh.
Margin held: Rs 7.5 lakh.
Shortfall: Rs 2.5 lakh (25% of margin).
Penalty: 1% per day = Rs 2,500 per day.
Over 5 days: Rs 12,500.

Example 3: large shortfall

Margin required: Rs 10 lakh.
Margin held: Rs 6.5 lakh.
Shortfall: Rs 3.5 lakh (35% of margin).
Penalty: 5% per day = Rs 17,500 per day.
Over 3 days: Rs 52,500.

Large shortfalls compound rapidly.

Calculation on WebNotes