# 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&#x20;

  Collateral is shared across all cross-margin positions, maximizing capital efficiency. Losses or gains from one position can affect others under the same mode.

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### **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* In cross margin, the initial margin is locked and cannot be withdrawn.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)

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### **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.
