Margin Requirement

Enforcing safe leverage by tying position size to posted collateral.

Liquidation occurs when a position’s remaining collateral is no longer sufficient to support its leveraged exposure at current market prices. At that point, the system closes the position and unwinds the associated hedge.

A position is liquidated when unrealized losses reduce the collateral buffer below the minimum required to maintain the position, and

Once this threshold is reached, Multiply executes a full close-out to ensure the exposure can still be unwound at a bounded cost, given available market liquidity and fees.

Liquidation is therefore triggered by the relationship between collateral, leverage, fees, and current market prices. The system closes the position as soon as it can no longer be maintained within its defined safety parameters.

Multiply uses a visible liquidation price to determine when a leveraged position must be closed.

Users always see a single liquidation price in the front-end UI, along with their current margin buffer. Internally, the system recalculates margin requirements and liquidation price continuously as venue prices, depth, and spread evolve — but the user interacts with a clear, stable threshold rather than the underlying mechanics.

The liquidation price is computed from:

• entry price and current leverage

• modeled cost to unwind the hedge under conservative execution assumptions

• liquidation buffer sized to absorb tail slippage beyond modeled cost

• venue fees and gas costs where applicable

• accrued time-based fees owed to Multiply