What Are the Primary Risks Associated with Using Cross-Margin for Highly Volatile Altcoin Derivatives?

The main risk is the potential for a cascading liquidation event. A sharp, sudden price drop in one highly volatile altcoin derivative position can quickly deplete the entire cross-margin collateral pool.

This leads to the liquidation of all positions in the account, even profitable or low-risk ones, to cover the loss. This 'all-or-nothing' risk is significantly higher than with isolated margin.