Keeping the hedge flat

A short opened at 2x on isolated margin. Price rises. What happens to its effective leverage, and why?

• It stays at 2x, because leverage is set when you open
• It rises, because the loss comes out of the margin while the position's value grows
• It falls, because the spot leg is gaining

On a coin-margined hedge, which coins count toward your long side?

• Only the coins in your wallet
• Only the coins posted as margin
• Both the wallet coins and the coins posted as margin