Margining
Margin Modes
When opening a position, users must choose a margin mode:
Isolated Margin (default)
Collateral is confined to a single asset. If the position is liquidated, it does not impact other positions. Losses from elsewhere also won’t affect this position.
Cross Margin
Collateral is shared across all cross-margin positions, maximizing capital efficiency. Losses or gains from one position can affect others under the same mode.
Initial Margin & Leverage
Users can set leverage anywhere from 1x up to the asset’s maximum.
The margin required to open a position is:
Initial Margin = (Position Size × Mark Price) ÷ Leverage
In cross margin, the initial margin is locked and cannot be withdrawn.
In isolated margin, users can adjust margin (add/remove) even after the position is opened.
For cross positions, unrealized PnL can be reused as margin for new positions. For isolated positions, unrealized PnL adds to that position’s margin.
Once a position is open, leverage is not automatically re-evaluated. Users must monitor their risk and can adjust by:
Closing part or all of the position
Adding margin (if isolated)
Depositing USDC (if cross)
Maintenance Margin & Liquidation
Cross positions are liquidated if your total account value (including unrealized PnL) falls below the maintenance margin, which is half of the initial margin at max leverage.
Isolated positions follow the same logic, but the calculation is limited to the margin and notional value of the individual position only.
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