Perps V3 is in early Beta, and Synthetix and Kwenta are hosting a Testnet Competition to get early feedback on the new backend infrastructure and user-facing UX. Those Participating in the early beta testnet competition should be aware of a few things.
V3 introduces cross-margin markets; these markets share a pool of collateral vs. isolated, which only has access to an assigned amount of collateral.
Risk and Liquidation:
Cross Margin (or Shared Margin): In this method, all the assets in the margin wallet are used to avoid liquidation. If one position moves against the trader, all available balances in the margin wallet can be used to cover the loss. This can be beneficial since it prevents early liquidations. However, it also means that if things go really wrong, a trader can lose all the funds in their margin wallet.
One of the benefits of V3, is that traders can use multiple collateral types. During the competition, traders can maintain exposure to certain assets, including snxETH & snxBTC here: