🕸️Cross-Margin Accounts

LODE’s Cross-Margin Account System

LODE leverages a cross-margin account system, where your entire portfolio acts as collateral for multiple positions. Traders deposit USDC as stablecoin collateral, providing a secure and stable foundation for trading.

Advantages of Cross-Margin Accounts

• Capital Efficiency: By using your entire portfolio as collateral, you can open more positions with less capital upfront, enhancing trading flexibility.

• Risk Offset: Profits from one position can offset losses in another, potentially reducing the likelihood of liquidation.

• Lower Margin Requirements: Cross-margin accounts typically have lower margin requirements compared to isolated margin accounts, as risk is spread across the entire portfolio.

Risks and Considerations

• Total Account Liquidation: The most significant risk is that if your account's equity balance drops below the maintenance margin, LODE will liquidate ALL positions in the account, not just the losing ones. This can result in a total loss of your held positions.

• Complex Risk Management: Managing a cross-margin account requires a good understanding of overall portfolio risk, as adverse market movements can affect your total collateral value.

Account Management at LODE

LODE provides a streamlined interface for monitoring and managing open positions, with automated calculations for margin and uPNL. This simplifies trading by offering a clear view of your portfolio's risk and performance.

LODE may offer isolated margin in the future. For now, traders can create multiple sub-accounts to isolate trades. Please note that collateral cannot be transferred between these sub-accounts.