> For the complete documentation index, see [llms.txt](https://docs.txflow.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.txflow.com/perp/accounts-and-margin.md).

# Accounts and Margin

### Collateral

TxFlow uses `USDC` as the sole collateral asset for all positions.

### Margin modes

When opening a position, choose one of two margin modes:

<table><thead><tr><th width="148.45703125">Mode</th><th width="353.33984375">How It Works</th><th width="266.28515625">Best For</th></tr></thead><tbody><tr><td><strong>Cross Margin</strong></td><td>All cross-margin positions share a single collateral pool, maximizing capital efficiency. Unrealized PnL from one position can offset losses in another.</td><td>Experienced traders managing multiple positions</td></tr><tr><td><strong>Isolated Margin</strong></td><td>Collateral is dedicated to a single position. Liquidation in one isolated position does <strong>not</strong> affect other positions.</td><td>Limiting risk on high-leverage or speculative trades</td></tr></tbody></table>

### Initial margin and leverage

Leverage lets you control a larger position with less capital. You can select leverage up to the maximum allowed for each asset (see [Margin Tiers](/perp/trading-rules/margin-tiers.md)).

\
**Initial Margin** is the collateral required to open a position:

<table><thead><tr><th width="164.05859375">Mode</th><th width="556.09375">Formula</th></tr></thead><tbody><tr><td>Cross Margin</td><td>Initial Margin = Position Size × Mark Price ÷ Leverage</td></tr><tr><td>Isolated Margin</td><td>Initial Margin = Position Size × Mark Price ÷ Leverage</td></tr></tbody></table>

Once open:

* Initial margin is locked and cannot be withdrawn until the position is closed.
* **Isolated positions:** You can manually add margin to reduce liquidation risk.
* **Cross positions:** Unrealized PnL automatically contributes to your total margin balance.

### Maintenance margin and liquidations

**Maintenance Margin** is the minimum collateral required to keep a position open. If your equity drops below this level, your position may be **liquidated**.

```
Maintenance Margin = Position Notional × MMR 
```

<table><thead><tr><th width="157.69921875">Margin Mode</th><th width="576.18359375">Liquidation Trigger</th></tr></thead><tbody><tr><td><strong>Cross Margin</strong></td><td>Account value (including unrealized PnL across all cross positions) falls below total maintenance margin requirement</td></tr><tr><td><strong>Isolated Margin</strong></td><td>That position's margin falls below its individual maintenance margin requirement</td></tr></tbody></table>

### Cross vs. isolated — key differences

<table><thead><tr><th width="194.94140625">Feature</th><th width="270.05859375">Cross Margin</th><th width="272.18359375">Isolated Margin</th></tr></thead><tbody><tr><td>Collateral</td><td>Shared across all cross positions</td><td>Dedicated to single position</td></tr><tr><td>Unrealized PnL</td><td>Offsets other positions</td><td>Only affects that position</td></tr><tr><td>Liquidation impact</td><td>Can affect all cross positions</td><td>Limited to that position only</td></tr><tr><td>Add margin manually</td><td>No (automatic via shared pool)</td><td>Yes</td></tr><tr><td>Capital efficiency</td><td>Higher</td><td>Lower</td></tr><tr><td>Risk management</td><td>Shared risk</td><td>Contained risk</td></tr></tbody></table>

{% hint style="warning" %}
**High leverage amplifies both gains and losses.** A small price movement can result in significant losses or complete liquidation of your position. Only trade with funds you can afford to lose.
{% endhint %}

### Related Pages

<table><thead><tr><th width="225.91796875">Pages</th><th width="502.671875">Description</th></tr></thead><tbody><tr><td><a href="/pages/scPRmf2UHNygzfDCY7Iu">Trading Rules</a></td><td>Trading rules of TxFlow</td></tr><tr><td><a href="/pages/ULmoXhthX9AEP6aH6ZSe">Order Types and Matching</a></td><td>Market, Limit, and advanced orders and matching mechanics</td></tr></tbody></table>