# Margin Trading

> Liqui Margin Trading introduces high-performance leveraged trading with advanced AI-powered risk management. Built on MegaETH, the system allows users to open long and short positions with dynamic leverage, precision liquidation mechanisms, and intelligent volatility-aware safeguards.
>
> An autonomous risk engine continuously adjusts parameters to optimize safety, capital efficiency, and user experience.

### Margin Modes

Liqui supports both Cross Margin and Isolated Margin, giving users full flexibility to manage risk and allocate capital according to their trading strategy.

### Cross Margin

In Cross Margin mode, all positions draw from a shared collateral pool. The protocol aggregates unrealized PnL and margin requirements to assess overall account health. This reduces the risk of premature liquidations by balancing profitable and unprofitable trades.

{% hint style="info" %}
Use Cross Margin when optimizing capital across correlated trades or a unified strategy.
{% endhint %}

### Isolated Margin

In Isolated Margin mode, each position is collateralized independently. Only that position’s margin and unrealized PnL are considered during liquidation, preventing losses in one trade from affecting others.

{% hint style="info" %}
Use Isolated Margin to contain risk per trade - ideal for high-leverage or high-volatility positions.
{% endhint %}

### Features

* **AI-Calibrated Margin Ratios**                                                                                                                                                                                              Leverage adjusts in real time based on volatility, liquidity conditions, and individual position risk.
* **Autonomous Liquidation Engine**                                                                                                                                                                                              Smart liquidation logic minimizes cascade effects and prevents front-running.
* **Predictive Risk Modeling**                                                                                                                                                                                              Each position is evaluated continuously based on live market data, enabling early warnings and preemptive protection.
* **Fully On-Chain and Transparent**                                                                                                                                                                                              All operations - from leverage application to liquidation - are executed by verified smart contracts, ensuring full transparency and auditability.


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