HTX supports both Cross Margin and Isolated Margin accounts, which differ significantly from each other in the following areas.

Risk Rate Calculation

The Risk Rate is an important indicator of a user's risk level.

For a Cross Margin Account, the assets and debts of all cryptocurrencies in the account constitute the risk level of the entire Cross Margin Account.

Whereas an Isolated Margin Account is specifically established for one single currency pair, so each account has a separate risk rate, which is affected by the assets and debts of the two symbols tokens of this currency pair.

Risk Segregation

Although the risk caused by one trading pair is not segregated from other assets within the account, liquidation is less likely to occur in a cross-margin account. Because the floating profits and losses of all positions in a cross-margin account offset with one another, which lowers the probability of liquidation. However, when liquidation happens, all margin assets within a cross-margin account will be used to repay the debt until the debt is paid up or the margin assets are depleted. Assets other than those used as collateral or that aren't included in the margin value calculation will not be liquidated.

Liquidation is more likely to occur in an isolated margin account, but the impact is only limited to the single isolated margin account. The floating profits and losses of various isolated accounts are isolated from one another and don't offset. Therefore, when liquidation occurs in an isolated-margin account, the impact is only limited to the token assets within the account, without affecting other isolated- or cross-margin accounts.

Collateral

All collateral assets of a cross-margin account constitute the available margin collateral of this account. While in an isolated-margin account, only the pricing currency and the base currency of the trading pair specific to the isolated-margin account can be used as collaterals. Crypto assets in any isolated-margin or cross-margin accounts cannot be used as the collaterals for other isolated-margin accounts.