How leverage and liquidation safety are determined across the platform.
The Multiply risk model determines:
how much leverage can be offered,
how much notional a user can take,
how much total exposure a market can support,
when margin requirements change, and
when liquidation becomes necessary.
The model is built around one invariant:
At every moment, the system must be able to unwind the net hedge at a bounded and fully collateralized cost.
All computations flow from this requirement.
Last updated 1 month ago
