Isolated Margin
There are two types of position margins: cross margin and isolated margin. Currently, the HyperionX platform only supports isolated margin.Isolated margin refers to the margin of a position being independent of the user's Exchange Wallet balance. If a position is liquidated, the trader will only lose the margin of that specific position. Therefore, under isolated margin mode, the position margin is:
Position Margin (Isolated Margin Mode) = Initial Margin + Adjustment Margin for that Position
The advantages of isolated margin include:
Independent accounts ensure that the profit and loss of one position do not affect others.
Individual liquidation of a position does not impact the status of other positions.
Precise leverage control allows effective management of leverage for each position, managing them separately to avoid excessive leverage.
Example
User A opens an ETH position with 100 USDX at an ETH price of 2,500, using 10x leverage, which means the initial margin is 10 U. When the market fluctuates and the ETH price drops to 2,400, the unrealized profit and loss is -4 USDX, the remaining margin is calculated as follows:
100/10 + 100 * (2,400 - 2,500) / 2,500 = 6 USDX
User A has 1,000 USDX in his Exchange Wallet. He uses 500 USDX as margin to open a 20x leveraged ETH perpetual short position. However, due to fluctuations in the ETH price, User A's position gets liquidated. In this case, using the isolated margin model, User A only loses the 500 USDX used for the ETH position. The remaining 500 USDX in his Exchange Wallet remains unaffected.
Last updated