Key Takeaways
Margin mode is set per market. Cross and isolated positions can be held simultaneously across different markets.
Cross margin collateralises a position with the full account balance. Isolated margin collateralises it with a fixed, assigned amount.
Cross margin protects individual positions using your entire balance. Isolated margin protects position loss at the expense of earlier liquidation and committed collateral.
Margin modes cannot be changed while an open position or open order exists in
that market.
What is Isolated Margin
Isolated margin collateralises a position with a fixed amount assigned to that market, rather than the full account balance.
Because a position is supported by dedicated, isolated collateral, the position may reach liquidation on a smaller adverse move than the equivalent cross position. In return, the loss is capped: no other position and no additional collateral is affected if the position is liquidated.
Liquidation is assessed at position level when MM Usage crosses 100%.The assigned margin can be increased or reduced while the position is open, moving the liquidation price further from or closer to the current price. Collateral added to an isolated position is drawn from the cross balance.
Isolated margin is applied per market. Setting one market to isolated has no effect on positions in any other market.
What is Cross Margin
Cross margin collateralises a position with the entire account balance. All cross positions draw on a single shared pool of collateral, equal to deposited USDC adjusted by unrealised PnL across open positions.
Because collateral is shared, unrealised profit on one position supports other positions, and a position can absorb a larger adverse move before liquidation than it could using isolated margin. Similarly, losses reduce the collateral available to every other cross position, and liquidation is assessed at account level when MM Usage crosses 100%.
Cross margin is the default on Omni. A market remains cross-margined unless explicitly switched to isolated.
Key Differences Between Cross and Isolated Margin
Because margin mode is set per market both are commonly used together, with cross margin as the default across a portfolio and isolated margin applied to positions that require a fixed maximum loss.
Collateral: Cross margin uses the full account balance; isolated margin uses a fixed amount assigned to the market.
Maximum loss: Under cross margin, losses can be spread across an entire portfolio. Under isolated margin, loss is limited to the dedicated amount.
Liquidation: Cross positions are liquidated when account-wide MM Usage reaches 100%, a threshold affected by every open cross position. Isolated positions are liquidated when position MM Usage reache 100%, independent of the rest of the account.
Interaction between positions: Cross positions are not independent: PnL on one affects the collateral supporting all others. Isolated positions are protected.
Capital efficiency: Cross margin requires no per-market allocation and allows unrealised gains to support other positions. Isolated margin commits collateral to a single market, where it cannot be used to support other positions.
| Cross Margin | Isolated Margin |
Collateral | Full account balance | Fixed amount assigned to the market |
Maximum loss | Entire cross collateral | Assigned margin |
Liquidation trigger | Account MM Usage reaches 100% | Position MM Usage reaches 100% |
Liquidation price | Varies with total portfolio | Varies only with the position |
Effect on other positions | Losses reduce collateral across the portfolio | None |
PnL offsetting | Unrealised gains support other positions | None |
Margin adjustment | Portfolio level | Position level |
Frequently Asked Questions
Which margin mode carries less risk?
Cross margin provides an individual position with more collateral before liquidation; isolated margin fixes the maximum loss on a position. The appropriate mode depends on whether the objective is to protect the position or the account.
Can different modes be used on different markets?
Yes. Margin mode is set per market and applies only to that market.
Can margin mode be changed while a position is open?
No. The position must be closed and any open orders cancelled before the mode can be changed.
What happens to other positions if an isolated position is liquidated?
Nothing. The loss is limited to the isolated position; cross collateral is unaffected.
Does assigning isolated margin affect cross positions?
Yes. The collateral is drawn from the cross balance, reducing the collateral supporting cross positions and moving their liquidation prices closer.