macrocephalopod

One difference between linear futures (i.e. dollar or stablecoin-margined) and inverse futures (asset-margined) is that for a long position in linears, as price falls the value of your collateral stays the same but required collateral falls, which cushions you a bit ...

... whereas for inverse futures, your collateral falls in value but the required collateral stays the same, which accelerates your loss. One consequences is that a fully collateralized position in linears can survive a 100% fall in the underlying, ...

... but a fully collateralized position in inverse futures can only survive a 50% fall in the underlying, since you take a 50% loss on the futures and a 50% loss on your collateral at the same time, and then get liquidated (you are actually 2x leveraged).

It works the other way for short positions! A fully collateralized short position in linears cannot survive if the underlying doubles in value, but a fully collateralized short position in inverse can survive big price spikes, since the collateral offsets the futures loss.