> For the complete documentation index, see [llms.txt](https://docs.vibe.trading/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vibe.trading/trading/collateral-and-margining.md). # Collateral & Margining ## Collateral **USDC Deposits** All trades require USDC deposits as collateral, ensuring traders have sufficient funds to cover potential losses. Solvers also deposit equivalent USDC for symmetry. Settlements occur in USDC. **Credit Valuation Adjustment (CVA)** CVA is a penalty applied during liquidation, paid to the non-liquidated party. It incentivizes both sides to maintain balanced positions and serves as a form of liquidation insurance. ## Cross-Margin By default, Vibe uses cross-margin accounts: * Capital Efficiency: Your entire portfolio (USDC balance plus open trades) backs multiple positions. * Risk Offset: Gains on one position can offset losses on another. Total Account Liquidation Risk: If your overall equity falls below the maintenance margin, all positions are liquidated. ## Isolated Margin (Coming Soon) Vibe will introduce truly isolated margin in future releases. For now, you can simulate isolated margin by creating separate sub-accounts. Note that funds cannot be transferred between sub-accounts once allocated. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.vibe.trading/trading/collateral-and-margining.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.