A unified margin layer refers to a system that consolidates a user’s collateral across multiple trading positions or financial products into a single pool. This allows for more efficient capital utilization and streamlined risk management. Instead of maintaining separate margin for each position, the entire portfolio acts as collateral. This approach reduces liquidation risks and optimizes capital allocation.
Context
Unified margin layers are increasingly implemented by sophisticated cryptocurrency exchanges and decentralized finance protocols to enhance capital efficiency for traders. News often discusses the benefits of such systems in reducing margin calls and improving overall risk management for complex trading strategies. This technology aims to provide a more cohesive trading experience.
This cross-venue collateral primitive aggregates user deposits into a single credit pool, directly addressing liquidity fragmentation and boosting portfolio-wide capital efficiency.
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