> ## Documentation Index
> Fetch the complete documentation index at: https://docs.intention.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Margin Modes

> Intention supports isolated margin (per-position) and cross margin (account-wide), with one-way and hedge position modes on top.

Every account on Intention picks a margin mode and a position mode. Together they control how risk is pooled, how margin is allocated across positions, and how liquidations work.

## Isolated vs cross

### Isolated margin

Each isolated position has its own dedicated margin balance. Its worst-case loss is bounded by the margin you allocated to it — nothing else in your account is at risk.

* **Risk isolation.** A blow-up on one position cannot bleed into another.
* **Manual control.** You choose how much margin each position gets and can [add or remove margin](/trading/add-margin) manually while the position is open.
* **Independent liquidation.** When mark price reaches the position's liquidation price, only that position is liquidated.
* **Automatic add-margin.** Isolated positions can opt in to automatic top-ups from your free wallet balance to survive insta-wicks.

The downside is capital efficiency: unrealized profits on one isolated position do not back other positions, and you cannot auto-offset long/short exposure across the account.

### Cross margin (default)

Cross margin pools the entire account equity as collateral for every position. Unrealized profits on one position can fund initial margin for others; losses on one position draw from the shared pool.

* **Efficient.** Net exposure matters more than gross exposure.
* **Automatic hedging.** Offsetting positions reduce combined margin requirement.
* **Simple management.** No manual margin top-ups required.
* **Single liquidation threshold.** The entire account liquidates when account-level MMR reaches 100%.

The downside is systemic risk: a catastrophic loss on one position can cascade to the others.

### Comparison

|                          | Isolated                                   | Cross (default)                                |
| ------------------------ | ------------------------------------------ | ---------------------------------------------- |
| Position modes           | One-way or hedge                           | One-way or hedge                               |
| Risk metric              | Liquidation price, bankruptcy price        | Initial margin ratio, maintenance margin ratio |
| Hedged leverage          | Long and short can use different leverage  | Long and short must use the same leverage      |
| Liquidation trigger      | Mark price hits position liquidation price | Account MMR ≥ 100%                             |
| Supports auto add-margin | Yes                                        | Not applicable                                 |

## One-way vs hedge position mode

Position mode is an account-level setting that applies to all contracts.

### One-way mode

Only one net position per contract. A new order in the opposite direction reduces (or flips) your existing position automatically.

Example: hold 1 BTC long, sell 1.5 BTC → the first 1 BTC closes the long, the remaining 0.5 BTC opens a new short.

One-way mode is simpler, uses less margin (only the net needs collateral), and is the right default for most traders.

### Hedge mode

Long and short positions on the same contract can coexist independently. Each has its own entry price, size, margin, and TP/SL.

Example: hold 1 BTC long and 0.5 BTC short simultaneously. Closing the long does not affect the short.

Hedge mode is useful for strategies that intentionally run offsetting positions (for instance, basis trades or event hedges) but doubles the margin footprint relative to one-way mode.

## Switching modes

Changing margin mode or position mode requires the account to be flat on that contract:

<Steps>
  <Step title="Close all positions">
    No open positions can exist.
  </Step>

  <Step title="Cancel all open orders">
    No resting limit orders.
  </Step>

  <Step title="Cancel all conditional orders">
    No TP/SL or trigger orders pending.
  </Step>

  <Step title="Submit the switch">
    The new mode applies from the next block on.
  </Step>
</Steps>

A future iteration may permit mode switching with resting orders but no open positions.

## Which to pick

* **Default to cross, one-way.** Simpler risk model, more capital efficient.
* **Use isolated** when you want to bound the downside of a specific speculative trade without affecting the rest of the account.
* **Use hedge mode** only if your strategy genuinely requires it. Most traders are better served by one-way even if they are running long/short books — at the account level, the economics are usually identical.

For details on how leverage interacts with position size, see [Leverage](/trading/leverage). For margin math, see [Liquidations](/trading/liquidations).