How Does Cross-Margin Differ from Isolated Margin in Crypto Derivatives?
Isolated margin allocates a specific, limited amount of collateral to a single position, isolating the risk so that only that position's margin is at risk of liquidation. Cross-margin, however, uses the entire account balance as collateral for all open positions.
This allows positions to share risk and potentially avoid liquidation longer, but a single failing position can deplete the entire account balance.
