Isolated/Cross Margin Modes

Venkate offers two margin modes: isolated margin mode and cross margin mode.

 What is Isolated Margin Mode?

In isolated margin mode, the account balance and position margin are independent. Traders can freely decide the leverage multiple used. If a position is liquidated, the maximum loss is the position margin.

Example: A trader opens a 1500 BTCUSD position at $10,000 using 1x leverage. The initial margin is 0.15 BTC. Later, they increase leverage to 3x, adjusting the initial margin to 0.05 BTC. If liquidated, the trader loses only the 0.05 BTC initial margin (excluding fees), effectively controlling risk.

What is Cross Margin Mode?

Cross margin mode is Venkate's default margin mode. It uses all available balance of the corresponding currency as position margin to maintain positions and avoid liquidation. If assets are insufficient to meet margin requirements, liquidation is triggered. If liquidated, the trader loses all assets in the corresponding currency.

Example: A trader opens a BTCUSDT position. If liquidated, they lose all USDT balance but not the BTC balance.

Can I Switch Between Cross and Isolated Margin Modes While Holding a Position?

Traders can change margin modes anytime in the order area. The new mode applies to open positions and active orders. Changing margin amounts affects and changes the liquidation price. If sufficient margin is available and the change does not immediately trigger liquidation, users can switch between isolated and cross margin modes anytime.