Skip to main content
Orderly supports two margin modes for perpetual futures: Cross Margin and Isolated Margin. Cross Margin is the default and shares your entire account balance across all positions. Isolated Margin lets you allocate a fixed amount of margin to a single position, capping your maximum loss to that amount. Isolated Margin currently accepts USDC only as collateral. This page explains how Isolated Margin works, how it differs from Cross Margin, and when to use each mode.

​
Cross Margin vs. Isolated Margin

In short, Cross Margin is more capital-efficient because your collateral backs everything at once. Isolated Margin gives you tighter control over how much you can lose on any single trade.

​
How Isolated Margin Works

​
Both modes work simultaneously

For the standard Orderly market set, Cross Margin and Isolated Margin are not mutually exclusive — both modes are supported at the same time. You specify the margin mode when placing each order, so you can use Cross Margin for some trades and Isolated Margin for others on those markets, without needing to switch modes. Some market types, such as permissionlessly listed markets, are available in Isolated Margin only.

​
Independent leverage

Each symbol can have different leverage settings under each margin mode. For example:
  • BTC-PERP Cross: 10x
  • BTC-PERP Isolated: 20x
  • ETH-PERP Isolated: 5x
The leverage you set in Isolated mode determines how much margin is required for that position. Higher leverage means less margin allocated (and a tighter liquidation price).

​
Dual positions on the same symbol

You can hold both a Cross position and an Isolated position on the same symbol at the same time. For example, you could open a Cross long and an Isolated short on ETH-PERP simultaneously. Each position has its own margin calculation and liquidation price — they are completely independent.

​
Risk isolation

If an Isolated position is liquidated, only the margin assigned to that position is lost. Your other positions and your account balance remain untouched. This is the core benefit of Isolated Margin: your worst-case loss on any single trade is known upfront.

​
When to Use Isolated Margin

​
Margin Mode Availability

For markets that support both modes, traders can choose either Cross Margin or Isolated Margin when placing orders. Permissionlessly listed markets are the exception and should be treated as Isolated Margin only. Collateral requirement: Isolated Margin positions require USDC as collateral. Other assets in your account (such as USDT, ETH, WBTC, or SOL) cannot be used for Isolated Margin. To trade in Isolated mode, deposit USDC or convert existing assets to USDC.