HTX supports both cross margin and isolated margin accounts, which differ significantly in the following areas.

Risk Ratio Calculation

The risk ratio 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 determine the risk level of the entire cross margin account.

Whereas an isolated margin account is specifically established for a single currency pair, so each account has a separate risk ratio, which is affected by the assets and debts of the two tokens in that 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 margin accounts are separate and don't offset. Therefore, when liquidation occurs in an isolated margin account, the impact is only limited to the assets within the account, without affecting other isolated or cross margin accounts.

Margin

All collateral assets of a cross-margin account constitute the available margin of this account. 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 margin for other isolated margin accounts.