How to switch to Isolated Margin mode? (Risk isolation)

Understanding Isolated Margin Mode

1. Isolated Margin mode allocates a dedicated margin balance exclusively for a specific position, separating it from other open trades or the account’s shared margin pool.

2. This configuration prevents cross-position liquidation cascades, where losses in one trade trigger forced closures across unrelated positions.

3. Traders retain full control over how much capital to assign per position, enabling precise risk calibration aligned with individual strategy parameters.

4. The mode is particularly favored during high-volatility events, such as major economic data releases or unexpected protocol upgrades affecting token valuations.

5. Margin utilization is displayed independently per position, allowing real-time visibility into leverage efficiency and buffer thresholds.

Step-by-Step Activation Process

1. Log into the exchange platform using verified credentials and navigate to the derivatives trading interface.

2. Locate the margin mode toggle—typically found near the order entry panel or under position management settings.

3. Select “Isolated” from the available options: Cross, Isolated, or Portfolio Margin (if supported).

4. Confirm the switch through a modal dialog that displays warnings about potential position adjustments or required margin top-ups.

5. After activation, verify the change by checking the margin column next to each active position—it should display a fixed value rather than a dynamic percentage of total equity.

Margin Adjustment Mechanics

1. Users can manually increase or decrease the isolated margin assigned to an existing position without closing it.

2. Adding margin expands the liquidation price distance, effectively lowering the likelihood of premature exit due to short-term price noise.

3. Reducing margin tightens the liquidation threshold and may trigger immediate margin calls if current maintenance requirements are no longer met.

4. Adjustments take effect instantly but require sufficient available balance in the wallet’s margin sub-account.

5. Each modification generates an on-chain or internal ledger record, visible in the transaction history tab with timestamps and direction indicators.

Risk Parameter Visibility

1. The liquidation price becomes a static, clearly labeled field adjacent to the entry price and current mark price.

2. Maintenance margin ratio appears as a numeric percentage updated every 500 milliseconds, reflecting real-time solvency status.

3. Unrealized PnL is calculated solely against the isolated margin base—not the entire account balance—ensuring accurate exposure assessment.

4. Funding rate accruals continue to apply, but their impact on margin balance is computed only within the designated isolated bucket.

5. Position size limits adapt dynamically based on selected leverage and available isolated margin, preventing overcommitment errors.

Frequently Asked Questions

Q1: Can I switch back to Cross Margin after enabling Isolated Margin?Yes. The platform allows switching between modes at any time, provided no pending liquidations or forced closures are active.

Q2: Does Isolated Margin affect funding payments?No. Funding transfers occur independently of margin mode selection and follow the same settlement schedule and calculation logic.

Q3: What happens to my isolated margin if I close the position manually?The full remaining margin balance—including unused portion and realized profit or loss—is automatically returned to the main margin wallet.

Q4: Are stop-market orders supported in Isolated Margin mode?Yes. All order types function identically, though stop triggers execute against the isolated margin balance and associated liquidation parameters.