> For the complete documentation index, see [llms.txt](https://docs.variational.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.variational.io/omni/trading/margin.md).

# Margin

Margin requirements are set on a pool by pool basis; on Omni, all pools follow the same platform-wide margin requirements. Generally, margin requirements govern how much collateral is required to be deposited into the pool by each party to open and maintain positions. Margin is recomputed in realtime, and going below margin requirements may trigger *auto-liquidation* (depending on if this param is set to `true`). 

### Initial Margin and Maintenance Margin

* Initial Margin (IM): The amount of collateral required to open new positions.
* Maintenance Margin (MM): The amount of collateral required to maintain existing positions. Going above 100% MM usage may cause liquidations.
* As a general rule, the maintenance margin requirement is half that of the initial margin requirement. See [Leverage](/omni/trading/leverage.md) for more details.

### Isolated Margin vs Cross Margin

On certain markets users have the ability to toggle between isolated margin and cross margin mode. 

* **Cross margin mode:** your USDC balance is used to collateralize every position in cross margin mode. Upon crossing the 100% maintenance margin threshold, liquidations may occur on any position in cross margin mode. 
* **Isolated margin mode:** you have to deliberately add or remove USDC collateral for one position. Initial margin and maintenance margin requirements are computed based on the isolated USDC collateral for that one position. Liquidations will only affect this one position; other positions are completely segregated. 

When an isolated margin position is closed, the balance is automatically swept to the cross margin account.