What Is Isolated Margin Mode?
Isolated Margin Mode is designed to give traders granular control over individual positions by assigning margin separately to each trade. Unlike Cross Margin, which pools all your assets together, Isolated Margin allows you to manage risk per position, making it easier to limit potential losses on a single trade without affecting your entire account.
Under Flipster’s Position Bracket System, each position falls into a bracket based on its notional size. Each bracket defines:
- Maximum allowable leverage
- Maintenance margin rate
- Maintenance amount
Maintenance margin for a position is determined solely by its bracket, and adding size may push a position into a higher bracket, increasing its maintenance margin requirement.
Key Features
- Separate Margin per Position: Each position has its own allocated margin. Losses are limited to that specific position.
- Position Bracket System: Maintenance margin and leverage limits are determined by the bracket corresponding to your position size.
- Risk Exposure: Risk is position-level, meaning other trades are not affected if one position incurs a loss.
- Add/Remove Margin: Traders can adjust the margin for each position individually to manage risk or increase leverage. Adding margin may allow a position to stay in a lower bracket or support higher leverage.
- Liquidation Trigger: Occurs per position when the margin assigned falls below the maintenance requirement calculated using the bracket.
Supported Collateral
Only a single margin asset is allowed per trade.
Example: You can only use USDT for BTC/USDT perpetual trade, and other assets supported under Cross Margin cannot be used as collateral in Isolated Margin Mode.
Margin Management
You can add or remove margin for an individual position at any time to manage leverage and risk exposure.
- Adding margin can allow a position to remain in a lower bracket or support a larger size at the current bracket.
- Removing margin may push a position closer to the maintenance threshold and increase liquidation risk.
- This flexibility allows traders to extend the life of a position or optimize leverage without affecting other trades.
Liquidation Rules (Position Bracket System)
- Liquidation is triggered per position based on the position’s bracketed maintenance margin.
- Only the affected position is liquidated, unlike Cross Margin, where the entire account may be at risk.
- As positions grow and move into higher brackets, the required maintenance margin increases, which may bring the position closer to liquidation even if sufficient initial margin was originally allocated.
Key Takeaways
- Isolated Margin provides position-level risk control.
- Each trade uses its own margin, so losses do not affect other positions.
- Maintenance margin and leverage limits are determined by the Position Bracket System.
- Traders can add or remove margin to manage leverage for each trade.
- Multiple positions per symbol are allowed.
- Liquidation occurs only for the position at risk, not the entire account.