What Is the Difference Between Isolated Margin and Cross Margin in Crypto Futures?
Isolated Margin allocates a dedicated margin to each individual position, so losses are capped at that position's own allocation and every other position stays untouched if it gets liquidated. Cross Margin uses your entire shared Futures account balance as collateral for all open positions at once — profit from one position can offset loss on another, but if combined losses outpace the balance, the mode can draw on and forfeit your entire shared balance and affect every position under it simultaneously. Margin mode is set per contract, not account-wide.
| Aspect | Cross Margin | Isolated Margin |
|---|---|---|
| Margin Allocation | Entire shared Futures account balance across all positions | Dedicated margin allocated per position |
| Liquidation Risk | All positions under Cross Margin can be liquidated together, up to your entire shared balance | Only the specific position under Isolated Margin is liquidated |
| Margin Level Scope | Calculated against the whole shared balance across every Cross Margin position | Calculated per position, independent of your other positions |
| P&L | Positions can offset each other's unrealized gains and losses | P&L is fully separate per position |
| Funding Fee | Deducted every 8 hours from the shared account margin balance | Deducted every 8 hours from the position's own dedicated margin |
| Risk Control | Lower | Higher |
| Capital Efficiency | Higher | Lower |
| Switching Fee | None | None |
Which should you choose?
- Isolated Margin — choose this to cap the maximum loss on a specific trade at exactly the margin allocated to it, without risking other positions or the shared account balance.
- Cross Margin — choose this to use your full shared balance as a buffer and let profitable positions support losing ones, prioritizing capital efficiency.
Related questions:
Q: Can I use both Isolated Margin and Cross Margin at the same time on different contracts?
Yes. You can run Isolated Margin on one contract and Cross Margin on another at the same time — the margin mode is set per contract, not account-wide, so each open position can carry a different risk profile. Margin Level and liquidation risk for each contract are tracked independently.
Q: Which margin mode has higher liquidation risk?
Cross Margin carries higher systemic liquidation risk — a large loss on one position can deplete the shared margin pool and trigger liquidation of every position under Cross Margin at once. Isolated Margin confines that risk to a single position's own allocation, leaving your other positions untouched.
Q: Which margin mode is more capital-efficient?
Cross Margin is more capital-efficient because one pool of margin supports all positions, rather than locking up separate margin for each one individually. Isolated Margin trades away some efficiency for a hard cap on how much any single position can cost you.
Q: Does the choice of margin mode affect funding fees?
Yes, in terms of where the fee is deducted from, though not the rate itself. In Cross Margin, funding fees are deducted every 8 hours from the shared account margin balance. In Isolated Margin, the same fee is deducted from that position's own dedicated margin, never touching your other positions.