What is Cross Margin?

This information comes directly from Nexo's help center

Nexo Pro utilizes the 𝗖𝗿𝗼𝘀𝘀 𝗠𝗮𝗿𝗴𝗶𝗻 method, meaning that all of the assets stored in your Nexo Pro portfolio will be used as collateral for all of your loans generated through margin trades on the Spot Exchange.

For example, if you open a margin-based Buy order on the 𝗕𝗧𝗖/𝗨𝗦𝗗𝗧 pair and also have DOT and AXS in your Nexo Pro portfolio, the latter two assets will be treated as collateral for your loan along with your USDT balance and will count towards the Current Margin Level. If the Margin Level falls below the Liquidation Threshold, the system will sell parts of your collateral to restore the Margin Level above the liquidation threshold. During severe market downturns, a significant portion of the collateral could be sold to maintain the healthy state of your loan.

Keep in mind that only the balances stored in the Nexo Pro account are shared across your margin-based trades. If your Margin Level decreases, funds stored in your Nexo Savings Wallet will not be automatically transferred to Nexo Pro to secure your positions. If your Total Balance on Nexo Pro depreciates in value, you will need to move assets from the Nexo Platform manually in order to increase your collateral.

Source: What is Cross Margin?
October 24, 2022
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