> For the complete documentation index, see [llms.txt](https://docs.dimes.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.dimes.fi/risk-engine/introduction.md).

# Introduction

How leverage and liquidation safety are determined across the platform.

<mark style="color:$info;">The Multiply risk model determines:</mark>

* <mark style="color:$info;">how much leverage can be offered,</mark>
* <mark style="color:$info;">how much notional a user can take,</mark>
* <mark style="color:$info;">how much total exposure a market can support,</mark>
* <mark style="color:$info;">when margin requirements change, and</mark>
* <mark style="color:$info;">when liquidation becomes necessary.</mark>

<mark style="color:$info;">The model is built around one invariant:</mark>

**At every moment, the system must be able to unwind the net hedge at a bounded and fully collateralized cost.**

<mark style="color:$info;">All computations flow from this requirement.</mark>