# Position Management

#### Margining and Collateral Lock

<mark style="color:$info;">When a position is opened:</mark>

* <mark style="color:$info;">Multiply locks the initial margin required to support the leveraged exposure.</mark>
* <mark style="color:$info;">Additional buffer may be required depending on liquidity conditions, probability region, and modeled unwind cost.</mark>
* <mark style="color:$info;">Locked collateral remains onchain and cannot be withdrawn while the position is open.</mark>

<mark style="color:$info;">Multiply continuously recomputes required margin based on:</mark>

* <mark style="color:$info;">current venue prices</mark>
* <mark style="color:$info;">exposure size and leverage</mark>
* <mark style="color:$info;">leverage decay schedule</mark>
* <mark style="color:$info;">modeled execution cost to unwind at current depth and spread</mark>

**Marking to market and PnL updates**

<mark style="color:$info;">Multiply updates PnL and margin state in real time as the underlying prediction market price changes.</mark>

* <mark style="color:$info;">When the price moves in the user's favor, their collateral buffer increases.</mark>
* <mark style="color:$info;">When the price moves against them, their buffer shrinks.</mark>

<mark style="color:$info;">The front-end receives a continuous feed of:</mark>

* <mark style="color:$info;">current state of the leveraged position</mark>
* <mark style="color:$info;">unrealized PnL</mark>
* <mark style="color:$info;">remaining collateral buffer</mark>
* <mark style="color:$info;">liquidation threshold</mark>

<mark style="color:$info;">The front-end displays this information to users. Multiply maintains the hedge automatically; users do not see or interact with hedging activity. Hedges are static once executed — they are not rebalanced in response to price movement, only modified when exposure changes through user action, leverage decay, or liquidation.</mark>

**Failure and fallback scenarios**

<mark style="color:$info;">If the underlying venue experiences an outage, feed interruption, or delayed resolution:</mark>

* <mark style="color:$info;">Multiply may activate circuit breakers, pausing new entries and adjustments (close-only mode).</mark>
* <mark style="color:$info;">Existing positions remain marked to the last known valid price.</mark>
* <mark style="color:$info;">If unwind execution exceeds slippage bounds, protected unwind mode is engaged — execution proceeds incrementally, paced against available depth.</mark>
* <mark style="color:$info;">If resolution is delayed, positions remain open until the venue publishes an authoritative result.</mark>
* <mark style="color:$info;">If the venue provides a corrected settlement result, Multiply adjusts PnL accordingly.</mark>

<mark style="color:$info;">If a hedge cannot be executed or unwound, Multiply refuses new entries and may engage protected unwind mode or escalate per its incident response framework.</mark>