{
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  "schemaVersion": "1.0.0",
  "id": "cross-vs-isolated-margin",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/cross-vs-isolated-margin/",
  "collection": "defi",
  "title": "Cross and isolated margin: which collateral supports a position?",
  "description": "Understand which collateral supports which positions and why an isolation boundary must be read from the protocol rules.",
  "aliases": [
    "cross margin vs isolated margin crypto",
    "shared collateral versus isolated position"
  ],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T19:18:00.092Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "Cross margin lets multiple positions share supporting collateral, so one position’s losses can consume equity supporting others. Isolated margin separates collateral into a defined account or market boundary. The cited dYdX market design also distinguishes shared versus separate insurance funds; isolation does not remove market, execution or protocol risk.",
    "claimId": "cross-vs-isolated-margin-quick-answer",
    "sourceIds": [
      "x425-defi-dydx-markets",
      "x425-defi-dydx-liquidation"
    ]
  },
  "keyFacts": [
    {
      "label": "Cross",
      "value": "The cited cross markets share collateral and an insurance fund.",
      "sourceIds": [
        "x425-defi-dydx-markets"
      ],
      "id": "cross",
      "claimId": "cross-vs-isolated-margin-fact-cross"
    },
    {
      "label": "Isolated",
      "value": "The cited isolated markets have segregated collateral and their own fund.",
      "sourceIds": [
        "x425-defi-dydx-markets"
      ],
      "id": "isolated",
      "claimId": "cross-vs-isolated-margin-fact-isolated"
    },
    {
      "label": "Interaction",
      "value": "Cross liquidation calculations account for other positions’ requirements.",
      "sourceIds": [
        "x425-defi-dydx-liquidation"
      ],
      "id": "interaction",
      "claimId": "cross-vs-isolated-margin-fact-interaction"
    }
  ],
  "prerequisites": [
    "leverage-margin-notional"
  ],
  "sections": [
    {
      "id": "example",
      "heading": "Track the equity that can absorb a loss",
      "sourceIds": [
        "x425-defi-dydx-liquidation",
        "x425-defi-dydx-markets"
      ],
      "paragraphs": [
        "Imagine a shared account has 2,000 equity supporting two positions. A 700 loss on one reduces the same equity available to support the other, even if the second position’s price is unchanged.",
        "If instead two properly segregated accounts each have 1,000, a loss in one is evaluated within its own boundary under the implementation’s rules. The illustration does not assume every interface offers automatic account segregation."
      ]
    },
    {
      "id": "boundary",
      "heading": "Identify what isolated actually means",
      "sourceIds": [
        "x425-defi-dydx-markets"
      ],
      "paragraphs": [
        "Isolation can describe a market, a subaccount or a position setting. Check where collateral resides, whether transfers are automatic and which insurance fund applies. A label alone does not establish that every risk or asset in the broader platform is separate."
      ]
    },
    {
      "id": "liquidation",
      "heading": "Read portfolio effects before a displayed price",
      "sourceIds": [
        "x425-defi-dydx-liquidation"
      ],
      "paragraphs": [
        "Cross-margin liquidation depends on the total account and requirements from other positions. A displayed estimate can change without a new trade in the position being inspected. Funding payments and transfers also alter the supporting equity, so a remembered liquidation price is not permanent."
      ]
    }
  ],
  "faq": [
    {
      "question": "Does isolated margin mean the position cannot be liquidated?",
      "answer": "No. It still needs sufficient equity within its isolation boundary.",
      "sourceIds": [
        "x425-defi-dydx-liquidation",
        "x425-defi-dydx-markets"
      ]
    }
  ],
  "claims": [
    {
      "id": "cross-vs-isolated-margin-quick-answer",
      "articleSlug": "cross-vs-isolated-margin",
      "statement": "Cross margin lets multiple positions share supporting collateral, so one position’s losses can consume equity supporting others. Isolated margin separates collateral into a defined account or market boundary. The cited dYdX market design also distinguishes shared versus separate insurance funds; isolation does not remove market, execution or protocol risk.",
      "sourceIds": [
        "source-abf997db4e47a939",
        "source-ba9f2069b72fa7c0"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-abf997db4e47a939",
          "locator": "Liquidity tiers; Market types"
        },
        {
          "sourceId": "source-ba9f2069b72fa7c0",
          "locator": "Margin; fillable price; liquidation"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked dYdX cross versus isolated market collateral/fund boundaries;700 loss consumes shared equity while isolation remains implementation-specific."
        ]
      }
    },
    {
      "id": "cross-vs-isolated-margin-fact-cross",
      "articleSlug": "cross-vs-isolated-margin",
      "statement": "Cross: The cited cross markets share collateral and an insurance fund.",
      "sourceIds": [
        "source-abf997db4e47a939"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-abf997db4e47a939",
          "locator": "Liquidity tiers; Market types"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
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      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
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        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked dYdX cross versus isolated market collateral/fund boundaries;700 loss consumes shared equity while isolation remains implementation-specific."
        ]
      }
    },
    {
      "id": "cross-vs-isolated-margin-fact-isolated",
      "articleSlug": "cross-vs-isolated-margin",
      "statement": "Isolated: The cited isolated markets have segregated collateral and their own fund.",
      "sourceIds": [
        "source-abf997db4e47a939"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-abf997db4e47a939",
          "locator": "Liquidity tiers; Market types"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked dYdX cross versus isolated market collateral/fund boundaries;700 loss consumes shared equity while isolation remains implementation-specific."
        ]
      }
    },
    {
      "id": "cross-vs-isolated-margin-fact-interaction",
      "articleSlug": "cross-vs-isolated-margin",
      "statement": "Interaction: Cross liquidation calculations account for other positions’ requirements.",
      "sourceIds": [
        "source-ba9f2069b72fa7c0"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-ba9f2069b72fa7c0",
          "locator": "Margin; fillable price; liquidation"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked dYdX cross versus isolated market collateral/fund boundaries;700 loss consumes shared equity while isolation remains implementation-specific."
        ]
      }
    }
  ],
  "sources": [
    {
      "id": "x425-defi-dydx-markets",
      "label": "Markets and margin parameters",
      "publisher": "dYdX Foundation",
      "url": "https://docs.dydx.community/dydx/modules/governance/governance-adjustable-parameters/markets",
      "locator": "Liquidity tiers; Market types",
      "note": "Initial/maintenance margin definitions and cross versus isolated market scope.",
      "version": "Documentation retrieved for the 2026-10-02 editorial scope; content hash recorded",
      "checkedAt": "2026-10-02T18:53:21.108Z",
      "contentSha256": "e8683056042b4c2a48ce18725115aa6397c6996ae1f57eea3ffe10c9b565705f",
      "recordId": "source-abf997db4e47a939"
    },
    {
      "id": "x425-defi-dydx-liquidation",
      "label": "Liquidations on dYdX Chain",
      "publisher": "dYdX Operations Services",
      "url": "https://help.dydx.trade/en/articles/166991-liquidations-on-dydx-chain",
      "locator": "Margin; fillable price; liquidation",
      "note": "Distinguishes eligibility, order execution and account losses.",
      "version": "Documentation retrieved for the 2026-10-02 editorial scope; content hash recorded",
      "checkedAt": "2026-10-02T18:53:20.755Z",
      "contentSha256": "40ce9a93e78b1d9baf4e40ea7a97773951e60917e2b24ca5d72d1cf2e7b591e2",
      "recordId": "source-ba9f2069b72fa7c0"
    }
  ],
  "related": {
    "articles": [
      "initial-vs-maintenance-margin",
      "insurance-funds-auto-deleveraging",
      "perpetual-funding-payments",
      "leverage-margin-notional"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and separate automated verification."
    }
  ],
  "citation": "Degrees of Satoshi editorial project. “Cross and isolated margin: which collateral supports a position?.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/cross-vs-isolated-margin/"
}