Coin-M Futures: Isolated and Cross-Margin Mechanics
Summary
The document explains how Coin-Margined Futures allow traders to use one cryptocurrency as collateral across several futures pairs, with profit and loss settled in the selected margin asset. Its examples describe trading BTC futures using ETH as collateral, avoiding the need to convert ETH to BTC first.
In isolated mode, only funds assigned to a position are exposed to its losses. Cross mode pools the value of assets in the Coin-M Futures wallet to support positions. The document says realized gains or losses are converted and returned to the selected margin account. It provides no performance data or detailed rules for collateral valuation, conversion, or liquidation calculations. Its risk discussion is limited: leverage can move liquidation closer, and liquidation can result in permanent loss, so traders should plan carefully and avoid excessive risk.
Key ideas
- Coin-M Futures can use one supported asset as collateral for contracts on other assets.
- Isolated margin confines position risk to funds allocated to that trade.
- Cross margin draws on the combined value of eligible assets in the futures wallet.
- Settled profit or loss is converted into the selected margin asset.
- Leverage brings liquidation closer and can result in permanent loss.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.