> For the complete documentation index, see [llms.txt](https://docs.fluvion.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.fluvion.io/perpetual-futures-mechanics/margin-modes.md).

# Margin Modes (Cross & Isolated)

Fluvion supports two distinct margin modes: **Cross Margin** and **Isolated Margin**. Both modes are available simultaneously across all supported contracts, giving you complete flexibility over how your capital is managed and protected.

***

## Comparison Summary

| Feature               | Cross Margin *(Default)*                                        | Isolated Margin                                                                |
| --------------------- | --------------------------------------------------------------- | ------------------------------------------------------------------------------ |
| **Collateral Pool**   | Shared across all open Cross positions                          | Dedicated exclusively to one specific position                                 |
| **Risk Scope**        | Account-wide: losses on one trade consume account equity        | Strictly capped: losses cannot exceed the isolated margin allocated            |
| **Profit Offsetting** | Unrealized gains automatically buffer losing positions          | No profit sharing between positions                                            |
| **Liquidation Event** | Triggers account-wide liquidation if total margin breaches MMR  | Liquidates **only** the isolated position; remainder of account is untouched   |
| **Best For**          | Portfolio hedging, high capital efficiency, multi-asset trading | High-leverage directional speculation, defined-risk setups, testing strategies |

***

## 1. Cross Margin Mode

In **Cross Margin**, your entire available USDC collateral balance acts as a single, shared cushion backing all of your open positions.

### How It Works

* All profits and losses from open Cross positions are pooled together in real time.
* If Position A is in profit (+**400 USDC**) and Position B is in loss (-**250 USDC**), the positive unrealized PnL from Position A automatically supports Position B, preventing Position B from reaching its liquidation threshold.
* As long as your overall **Account Margin Ratio (AMR)** stays above the required **Maintenance Margin Ratio (MMR)**, no positions will be liquidated.

### Advantages

* **Maximum Capital Efficiency**: You don't need to manually reallocate margin between trades.
* **Lower Liquidation Probability**: A single losing trade is far less likely to be prematurely liquidated if buffered by account cash and winning trades.

### Risk

* In an extreme market black-swan move, if aggregate losses exceed your total account equity and breach MMR, the account enters liquidation.

***

## 2. Isolated Margin Mode

In **Isolated Margin**, you allocate a specific, fixed amount of USDC collateral to an individual position.

### How It Works

* The margin dedicated to an isolated trade is completely separated from your main account balance.
* If the market moves sharply against your isolated position and hits its liquidation price, **only the margin assigned to that specific position is lost**.
* Your main account balance, free collateral, and all other open trades remain **100% safe and unaffected**.

### Advantages

* **Strict Loss Capping**: You know your exact worst-case dollar loss before entering the trade.
* **Risk Ring-Fencing**: Perfect for volatile meme tokens or maximum leverage positions where you want zero contagion risk to your primary portfolio.

### Mechanics & Margin Adjustment

* You can manually add or remove collateral from an open isolated position via the web UI to widen or tighten its liquidation price.

***

## Independent Leverage & Dual Positions

Fluvion offers advanced position flexibility:

### 1. Independent Leverage Settings

Each contract can run with its own independent leverage setting regardless of margin mode:

* `SOL-PERP` Cross: `10x`
* `BTC-PERP` Cross: `25x`
* `ETH-PERP` Isolated: `5x`

### 2. Simultaneous Cross & Isolated Positions

Because Cross Margin and Isolated Margin operate in separate risk domains, you can hold **both a Cross position and an Isolated position on the same symbol at the same time** (e.g., a long swing position in Cross mode, and a short scalp position in Isolated mode on `SOL-PERP`). Each position maintains its own independent margin balance, entry price, and liquidation price.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.fluvion.io/perpetual-futures-mechanics/margin-modes.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.