I am pretty sure that kraken leverage works differently. if you have 500 euro in your account and want a 2500 euro position with 5:1 leverage you have to actually put in an order for 2500 euro worth of bit oin and select 5:1.

if you put an order for 500 euro worth of bitcoin, that is the position you will receive. If you select leverage 5:1 with it, it means that only 100 euro from your account is used as margin for this position.