Isolated Margin

Isolated mode is designed for pure rate exposure with maximal leverage and strictly contained risk.

Core Concept

• Each pool is independent: collateral posted for one pool cannot cover another

• Liquidations are per pool, so one failing position doesn’t affect others

• Only the underlying asset of the pool is accepted as collateral

  • Example: aETH pool → only ETH collateral

  • Example: vUSDC pool → only USDC collateral

This keeps positions predictable and isolated.

Leverage & Discount Factors

• Extremely high leverage is possible: 500x–1000x effective depending on the pool and settlement type

• Discount Factors (DF) adjust how much collateral counts toward margin:

  • Coin-settled pools: 100% DF

  • USDC-settled pools: 99% DF to account for TWAP vs compounding mismatches

Even with high leverage, liquidations only affect the specific position, limiting systemic exposure

Collateral Blocking for Open Positions

• Collateral is blocked immediately when positions or orders are placed

• For open orders, the system considers the worst-case scenario for the side that could cause the largest loss

  • Only one side of an order pair (bid or offer) is blocked at a time

• This ensures your account can always cover potential losses without over-collateralizing multiple orders unnecessarily

Use Cases

• Professional rate traders who want isolated, high-leverage exposure

• Short-term tactical swaps or yield plays

• Testing new strategies without risking other positions