What Are Isolated and Cross Margin?
Isolated vs Cross Marginâ
When you open a perpetual position, its margin is the USDC that backs it. The margin type decides how much of your balance the position can use if the market moves against you.
| Isolated | Cross | |
|---|---|---|
| What backs the position | Only the margin you set for that position | Your whole available perpetuals balance |
| If it's liquidated | You lose that position's margin, and nothing else | Losses can draw on your whole balance, and other positions are affected |
| Liquidation price | Closer to the entry price, because less margin backs it | Further away, because more of your balance backs it |
| Best for | Limiting what one trade can lose | Experienced traders managing several positions together |
Which One Gem Wallet Usesâ
New positions open as Isolated by default. You set the margin for each position, and that's the most it can lose.
- You can change the default to Cross in Settings > Preferences > Perpetuals > Default Margin.
- Some markets only allow isolated margin, including every xyz market (stocks, indexes, and commodities). Those always open as isolated, whatever your default.
- A position keeps its margin type for its whole life. Increasing, reducing, or closing it doesn't change it.
warning
With Cross margin, a losing position can use your whole perpetuals balance before it's liquidated. Gem Wallet uses one USDC balance for all your Hyperliquid trading, so cross margin can put all of it at risk.
Where to See a Position's Marginâ
Open the position from the Perpetuals list. It shows the Margin in US dollars, along with the size, entry price, liquidation price, and PnL. The Perpetuals portfolio shows your Margin Usage across all positions.