Multiply-Related Risks

Amplified liquidation risk

Leverage magnifies price movements. With a 3x multiplied position, a 10% drop in the deposit asset's price reduces your equity by roughly 30%. Your Health Factor decreases faster than it would with an unleveraged supply, and your position can reach the liquidation threshold sooner.

WARNING

The higher your multiplier, the smaller the price move needed to trigger liquidation. Keep a buffer by choosing a multiplier well below the vault's maximum, and monitor your Health Factor during volatile periods.

Slippage and swap risk

Opening and closing a Multiply position involves a DEX swap. The executed price may differ from the quoted price due to market movement or low liquidity. If the swap output falls below your slippage tolerance, the transaction reverts and no position is opened or closed. In fast-moving markets, you may need to increase slippage tolerance or retry.

Oracle circuit breaker

During extreme price moves, the market's price oracle may temporarily stop returning updated prices. When this happens, actions that depend on price validation are paused, including opening, closing, or being liquidated on a multiplied position. Your position is frozen in both directions: you cannot increase or decrease exposure, but you also cannot be liquidated on a stale or anomalous price. Once price updates resume, all actions become available again.

Smart contract risk

A Multiply transaction is a composable batch that chains multiple protocol operations (flash borrow, swap, deposit, borrow or repay, withdraw) in a single atomic call. While the protocol is designed so that any step failing reverts the entire batch, the complexity of the interaction increases exposure to potential smart contract risks compared to a simple supply or borrow. Only use Multiply with amounts you are comfortable having in a DeFi protocol.