> For the complete documentation index, see [llms.txt](https://sol-perps-bot.gitbook.io/sol-perps-bot-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://sol-perps-bot.gitbook.io/sol-perps-bot-docs/perpetual-futures-mechanics/margin-modes.md).

# Margin Modes (Cross & Isolated)

Fluvion supports two distinct margin modes: **Cross Margin** and **Isolated Margin**. Both modes are available simultaneously across all supported contracts, giving you complete flexibility over how your capital is managed and protected.

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## Comparison Summary

| Feature               | Cross Margin *(Default)*                                        | Isolated Margin                                                                |
| --------------------- | --------------------------------------------------------------- | ------------------------------------------------------------------------------ |
| **Collateral Pool**   | Shared across all open Cross positions                          | Dedicated exclusively to one specific position                                 |
| **Risk Scope**        | Account-wide: losses on one trade consume account equity        | Strictly capped: losses cannot exceed the isolated margin allocated            |
| **Profit Offsetting** | Unrealized gains automatically buffer losing positions          | No profit sharing between positions                                            |
| **Liquidation Event** | Triggers account-wide liquidation if total margin breaches MMR  | Liquidates **only** the isolated position; remainder of account is untouched   |
| **Best For**          | Portfolio hedging, high capital efficiency, multi-asset trading | High-leverage directional speculation, defined-risk setups, testing strategies |

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## 1. Cross Margin Mode

In **Cross Margin**, your entire available USDC collateral balance acts as a single, shared cushion backing all of your open positions.

### How It Works

* All profits and losses from open Cross positions are pooled together in real time.
* If Position A is in profit (+**400 USDC**) and Position B is in loss (-**250 USDC**), the positive unrealized PnL from Position A automatically supports Position B, preventing Position B from reaching its liquidation threshold.
* As long as your overall **Account Margin Ratio (AMR)** stays above the required **Maintenance Margin Ratio (MMR)**, no positions will be liquidated.

### Advantages

* **Maximum Capital Efficiency**: You don't need to manually reallocate margin between trades.
* **Lower Liquidation Probability**: A single losing trade is far less likely to be prematurely liquidated if buffered by account cash and winning trades.

### Risk

* In an extreme market black-swan move, if aggregate losses exceed your total account equity and breach MMR, the account enters liquidation.

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## 2. Isolated Margin Mode

In **Isolated Margin**, you allocate a specific, fixed amount of USDC collateral to an individual position.

### How It Works

* The margin dedicated to an isolated trade is completely separated from your main account balance.
* If the market moves sharply against your isolated position and hits its liquidation price, **only the margin assigned to that specific position is lost**.
* Your main account balance, free collateral, and all other open trades remain **100% safe and unaffected**.

### Advantages

* **Strict Loss Capping**: You know your exact worst-case dollar loss before entering the trade.
* **Risk Ring-Fencing**: Perfect for volatile meme tokens or maximum leverage positions where you want zero contagion risk to your primary portfolio.

### Mechanics & Margin Adjustment

* You can manually add or remove collateral from an open isolated position via the web UI to widen or tighten its liquidation price.

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## Independent Leverage & Dual Positions

Fluvion offers advanced position flexibility:

### 1. Independent Leverage Settings

Each contract can run with its own independent leverage setting regardless of margin mode:

* `SOL-PERP` Cross: `10x`
* `BTC-PERP` Cross: `25x`
* `ETH-PERP` Isolated: `5x`

### 2. Simultaneous Cross & Isolated Positions

Because Cross Margin and Isolated Margin operate in separate risk domains, you can hold **both a Cross position and an Isolated position on the same symbol at the same time** (e.g., a long swing position in Cross mode, and a short scalp position in Isolated mode on `SOL-PERP`). Each position maintains its own independent margin balance, entry price, and liquidation price.