# Cross Margin

#### Cross Margin Portfolio

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## Cross Margin Portfolio

A **cross margin account** combines margin requirements across all your positions into a single pool. Any available margin can support any position in your portfolio.

### Benefits

**Capital Efficiency** — Excess margin from one position can offset requirements for another, freeing up capital that would otherwise sit idle.

**Reduced Liquidation Risk** — Pooled margin across all positions decreases the chance of individual liquidations during volatile periods.

**Simplified Management** — Monitor one margin account instead of tracking multiple isolated positions.

**Greater Leverage** — Margin requirements are calculated on your net portfolio risk rather than individual positions.

**Advanced Hedging** — Efficiently deploy margin across different positions to implement complex risk management strategies.

### Margin Calculation

Your portfolio health is determined by:

**Portfolio Margin Ratio = (Adjusted Equity + Unrealized PnL) / Maintenance Margin**

**Adjusted Equity** — Your collateral value after asset-specific haircuts:

* Stablecoins (USDC, USDT): 0-5% haircut
* Blue-chip crypto (WBTC, WETH): 10-15% haircut
* Large-cap alts: 20-30% haircut
* Mid/small-cap alts: 30-70% haircut

**Unrealized PnL** — Combined profit/loss across all open positions

**Maintenance Margin** — Minimum margin required to keep all positions open

### Important Considerations

Since margin is shared across all positions, losses in one trade can affect margin available for others. This increases overall portfolio risk if not carefully managed.

**Best Practices:**

* Monitor margin levels and total exposure closely
* Use stop-loss orders to limit downside
* Manage position sizes conservatively
* Maintain adequate margin coverage to avoid liquidation