How Do Cross-Margining Systems Handle a De-Peg Event?

Cross-margining systems use a single pool of collateral across multiple positions (e.g. futures and options) to manage margin requirements efficiently. A stablecoin de-peg event would instantly devalue this entire pool of collateral.

This sudden drop in the total margin value across all linked positions increases the risk of simultaneous margin calls and liquidations across the entire portfolio, potentially leading to systemic issues.