Portfolio margin unifies all trading into a single account balance for capital efficiency. Users can trade without selling their collateral, and all borrowable assets not actively used for trading automatically earn yield.

Users can use BTC and HYPE as collateral to borrow USDC and USDT to trade spot, perps, and outcomes. For example, a user could hold only HYPE and buy ETH on the ETH/USDC book. On the supply side, users can supply eligible quote assets (USDC and USDT) for others to borrow and earn yield. Borrowers pay and idle suppliers earn hourly according to the same utilization rate.

Portfolio margin unlocks functionality such as the carry trade where a spot balance is offset by a short perps position, collateralized by the spot balance. Spot and perp pnl offset each other, protecting against liquidation on the perp position. The result is a wider hedged price range with no trading cost to rebalance.