The smart logic of Hyperliquid PM:

Hyperliquid Portfolio Margin

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First, let's talk about why full margin and isolated margin are needed for opening contracts

In isolated margin, each position's margin is independent, and the maximum loss is just the margin of that one project.

- The benefit is risk isolation, one liquidation triggers only one
- The drawback is low capital utilization

In full margin,
One balance serves as margin for all positions; the floating profit of one project can act as margin for another's floating loss.

- The benefit is greatly increased capital utilization without the need for frequent top-ups
- The drawback is that liquidation = zero

Currently, the common full margin calculation model uses addition, meaning the margin requirements for each position are summed.

The problem this brings is: there's no overall perspective.

For example--

Suppose you are bearish on BTC, but you are actually using arbitrage.
- Buy 1 BTC spot
- Open a 1X BTC short position
Earn funding rates.

In theory, your risk is actually close to 0.

But if you use full margin, you still need to pay margin equivalent to 2 BTC's value.

This is the problem Hyperliquid aims to solve.