🔄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.