# Margining & Liquidations

### Margin

Stratium markets inherit Hyperliquid's margin system. Both cross-margin and isolated-margin modes are available, depending on your trading preference.

**Cross margin.** Your entire USDH balance serves as collateral across all open positions. More capital-efficient but exposes your full balance to liquidation risk.

**Isolated margin.** Margin is allocated per position. Losses are contained to the margin assigned. Useful for structured product positions where payoff dynamics differ from standard perps.

For detailed margin mechanics, see [Hyperliquid margin documentation](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/margin-and-leverage).

### Leverage

Maximum leverage is configured per market. Structured product markets may have lower maximum leverage than standard token perps due to the volatility characteristics of their underlying indices.

Leverage parameters for each market are published in the Contract Specifications page.

### Liquidations

Liquidation mechanics follow Hyperliquid's standard process. When a position's margin ratio falls below the maintenance margin requirement, the position is subject to liquidation by the protocol.

Key points for structured product markets:

* Liquidation triggers are based on **mark price**, not last trade price
* Mark price incorporates oracle data, internal exchange data, and smoothing mechanisms to prevent manipulation-triggered liquidations
* Structured product underlyings (volatility indices, hashprice) can exhibit different volatility profiles than standard token prices. Size positions accordingly.

For complete liquidation mechanics, see [Hyperliquid liquidation documentation](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/liquidations).

### Portfolio Margin

Hyperliquid is developing portfolio margin capabilities. When available, cross-margin positions across Stratium markets and native Hyperliquid perps will benefit from improved capital efficiency.

See [Hyperliquid portfolio margin documentation](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/portfolio-margin).


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