# Maximum Leverage

<mark style="color:$info;">Multiply sets maximum leverage by measuring how much directional exposure the underlying market can safely absorb. The ceiling is determined by three factors:</mark>

* <mark style="color:$info;">Available liquidity on the venue</mark>
* <mark style="color:$info;">Expected slippage when executing the hedge, and</mark>
* <mark style="color:$info;">Dimes' allowable weight in that individual market.</mark>

<mark style="color:$info;">These inputs define the effective capacity of the market and produce a leverage limit that reflects real depth rather than arbitrary risk rules.</mark>

<mark style="color:$info;">As markets vary in depth and shape, so do their leverage limits.</mark>

* <mark style="color:$info;">Deep markets with stable liquidity gradients typically support</mark> **8× to 10×** <mark style="color:$info;">leverage. These are markets where the top of book provides at least</mark> **2 to 3% of notional depth**, <mark style="color:$info;">and where simulated hedge execution stays under</mark> **30 to 50 bps** <mark style="color:$info;">of expected slippage for the size Multiply must hedge.</mark>
* <mark style="color:$info;">Mid-depth markets, where aggregated depth at the active probability bucket is closer to</mark> **1 to 2% of notional** <mark style="color:$info;">and slippage stays below</mark> **75 bps**<mark style="color:$info;">, generally support</mark> **4× to 6×** <mark style="color:$info;">leverage.</mark>
* <mark style="color:$info;">Thinner or more volatile markets with less than</mark> **1% depth** <mark style="color:$info;">at the active bucket, or with slippage simulations exceeding</mark> **1%**<mark style="color:$info;">, receive</mark> **2× to 3×** <mark style="color:$info;">leverage to maintain smooth hedge execution and avoid excessive price impact.</mark>

<mark style="color:$info;">Multiply adjusts these limits dynamically as venue liquidity changes. Every venue update recalculates depth, slippage, and concentration metrics, ensuring that leverage stays aligned with real market capacity and that the hedging facility can execute efficiently under all conditions.</mark>


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.dimes.fi/risk-engine/maximum-leverage.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.