What is Cross Margin vs Isolated Margin?

In cross-margin mode, all of your positions draw on a single shared collateral pool. Unrealised profit on one position can support another — but a deep loss anywhere can liquidate everything.

In isolated-margin mode, you assign a fixed amount of collateral to each position. A liquidation is contained to that position; the rest of your account is untouched.

For delta-neutral funding arbitrage, isolated margin per leg prevents one venue’s liquidation from cascading, while cross-margin maximises capital efficiency. The trade-off is containment vs efficiency.