Unified Margin refers to a risk management system where a single collateral pool supports all open positions across different asset classes or derivative products within an account. In crypto, its purpose is to enhance capital efficiency for institutional traders engaged in spot, futures, and options markets. This allows profits from one position to offset losses in another, thereby reducing overall margin requirements.
Mechanism
The mechanism aggregates the initial and maintenance margin requirements for all positions into a single, comprehensive calculation, typically managed by a clearing house or a centralized exchange. Instead of requiring separate collateral for each market or instrument, the system treats the entire portfolio as a single unit for risk assessment. If one position incurs losses, available equity from profitable positions or unallocated collateral in the unified pool can absorb these losses, preventing premature liquidation.
Centralized margining offers robust liquidity and regulatory clarity, while decentralized solutions provide self-custody and transparency with evolving capital efficiency.
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