Gemini May Allow XRP as Cross Collateral for Derivatives Amid Liquidation Risks

Key Points

1. Gemini now supports XRP, SHIB, DOGE, SOL, and BCH as cross collateral for derivatives trading, enabling users to leverage these assets instead of relying solely on stablecoins.

2. Cross margin on Gemini allows pooling the value of multiple cryptocurrencies to maximize available margin without converting assets to stablecoins.

3. Tokens like XRP and SHIB are prone to rapid price declines, increasing liquidation risk during market sell-offs.

4. COINOTAG analysts recommend diversification and cautious leverage to mitigate liquidation risks when using cross margin.

5. The expansion of cross collateral options provides more flexibility for traders but requires careful risk management due to the volatility of the included cryptocurrencies.