Key Takeaways:

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• ‍A single cross-margined account: All eligible assets are automatically accepted as collateral and can be used across all products: Spot Margin, Futures, Lending and Borrowing
• ‍Isolated risk with subaccounts: Margin and risk is isolated within each subaccount‍
• Earn yield on 100% of your collateral: Turn on auto lend to get yield while using lent assets as collateral to open and maintain Futures positions
• ‍Earn yield on your unrealized gains: Earnings automatically increase margin and cycle into the lending pool (to generate further yield)
• ‍PnL Flexibility: Turn on Auto Realize PnL to realize your PnL continuously, allowing you to redeploy profits instantly while decreasing effective fees‍
• Settlement Flexibility: avoid having non-USD collateral converted by automatically borrowing USDC to cover outstanding payments and settlements

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Welcome to Backpack, the most advanced, efficient, and user-friendly trading platform for serious traders like you. In this quick tutorial, we'll show you how our margin trading system on Backpack works and why it’s a game-changer compared to other exchanges. Let’s dive in.

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Unified Cross-Margin Account

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First, let’s talk wallets. With Backpack, everything runs through a single, multi-collateral, cross-margined wallet designed to maximize capital efficiency. That means no more access restrictions or endless clicks to enable or transfer assets between 10 different wallets for spot, futures, or margin trading like you’d have to on other exchanges. If you want to isolate risk - just create a wallet, deposit your funds and you’re ready to trade—simple, fast, and efficient. You can use a variety of non-USD assets as collateral, which contribute towards your Account Equity in order to open and maintain futures and borrow positions.

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Our subaccounts are built with ease and speed in mind. Switching accounts is seamless (just one click), so you can isolate risk and adapt to the market in real time.

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Auto Lend

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With our auto-lend feature turned on within a subaccount, all of your deposited assets in that subaccount are automatically entered into our lending pool, generating yield for you by default. These assets remain fully margin-eligible, eliminating the friction of having to manage separate “earn” accounts. Note you can toggle this feature on and and off at any time.

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Here's a quick summary of auto lend:

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• Automatically lend deposited assets within a subaccount
• Earn interest paid into the peer to peer pool
• Receive full collateral to trade on margin
• Redeem any time utilization permits

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Yes, this means you can earn interest on your USDC, BTC, and SOL while using that as collateral to trade futures. Picture a basis trade on Backpack - you can use your lent SOL as collateral, collect the lending rate, AND also earn the funding rate from the futures leg.

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Auto Realize PnL

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By turning on our auto PnL feature within a chosen subaccount you can choose to automatically and continuously realize your PnL. Note that this can be turned on and off at any given time. Unrealized PnL also earns/pays interest no matter what, and fully counts towards net equity.

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Automatically settling PnL also enhances liquidity efficiency, allowing you to redeploy profits instantly. Whether scalping, swing trading, or managing a portfolio, Backpack's unique auto PNL realization increases trader profit and decreases effective fees.

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Transparent Risk Models

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Transparency matters. That’s why Backpack is the only centralized exchange where you can see exactly how your yield is generated, in real-time. Our interest rate models are public and easy to access, giving you confidence in every trade.

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Final Thoughts

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Trading on Backpack is lightning fast. From depositing funds to basis trading, you’ll save time and at every step compared to other platforms. Our clean, lightweight UI reduces cognitive load and attention switching, while our cross-margin system is built from the ground up to give you maximum capital efficiency. Trade smarter, not harder, on Backpack.

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Learn more about Backpack

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Disclaimer: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Backpack. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Backpack is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice.