Upon creation of a VDM, the IOPL field in the EFLAGS register within the VDM process's task state segment is set to 3. This has two major effects:
If the VDM process is running with IOPL < 3, every interrupt causes a general protection exception; in such cases the operating system would need to virtualize the interrupt at all times, and to emulate all IOPL-sensitive instructions (CLI, STI, LOCK, PUSHF, POPF, INT n, and IRET). This would result in increased mode switching (between V86 and protected mode) and higher interrupt latency, and would therefore reduce performance.
Thus, under OS/2 Version 2.0, a VDM runs with IOPL=3 for maximum performance. Interrupts are virtualized and, where possible, handled within the V86 mode task.