📃Collateral & Cross-Margin Account

Before opening a trade on Star Perps, users must deposit collateral (USDC) into a cross-margin account. Unlike traditional margin systems that manage each position separately, the cross-margin system pools all positions and collateral together. This pooling allows profits from one position to offset losses from another, improving liquidity and minimizing the risk of liquidation.

Although this system offers flexibility, it also comes with responsibility. Leveraged trades can result in unrealized gains or losses that may exceed the initial collateral, especially during rapid market shifts. The cross-margin feature mitigates some risk by allowing traders to draw margin from the collective pool of deposits and positions.

In future updates, Star Perps will introduce isolated margin accounts for traders who prefer to manage risk separately for each trade. Currently, this can be achieved through the use of sub-accounts.