Position Management
Real-time controls to maintain solvency and enforce the trader’s intended exposure.
Margining and Collateral Lock
When a position is opened:
Multiply locks the initial margin required to support the leveraged exposure.
Additional buffer may be required depending on liquidity, probability region, and time to expiry.
Locked collateral remains on Solana and cannot be withdrawn while the position is open.
Multiply continuously recomputes required margin based on:
current venue prices
exposure size
leverage
expected execution cost to unwind
jump-risk and time-to-expiry
User margin must always be sufficient for a liquidation event to occur before unrealized loss exceeds posted collateral. This is the solvency invariant that protects the hedge facility:
MaxLoss ≤ Margin
If this cannot be guaranteed under current conditions, position size is reduced or new exposure is refused.
Marking to Market and PnL Updates
Dripster updates PnL and margin state in real time as the underlying prediction market’s price changes.
When the price moves in the trader’s favor, their collateral buffer increases.
When the price moves against them, their buffer shrinks.
The terminal receives a continuous feed of:
current value of the leveraged position
unrealized PnL
remaining collateral buffer
liquidation threshold
The terminal is displays this information to users.
Dripster maintains the hedge automatically; users do not see or interact with hedging activity.
Adjusting, Partially Closing, or Closing Positions Early
Users can adjust or close their position at any time through the terminal.
Partial Close
The terminal sends a close request specifying how much exposure to remove.
Dripster unwinds the corresponding portion of the hedge on the venue and releases proportional collateral.
Full Close
The terminal issues a request to close the entire position.
Dripster unwinds the complete hedge and unlocks all remaining collateral plus realized PnL.
Adjusting Leverage
Users cannot “change leverage” directly.
Instead:
they can increase exposure (more size) or
reduce exposure (sell part of position),
which changes effective leverage relative to their collateral.
All adjustments are subject to hedgeability checks.
Expiry and Final Settlement
Once the underlying prediction market resolves:
Dripster retrieves the final outcome from the venue’s official settlement source.
Synthetic positions are closed at the resolved payout:
winning side settles at 1
losing side settles at 0
Dripster unwinds any remaining hedge.
Realized PnL is computed and added to the user’s collateral balance.
The terminal reflects the final payout in the user’s account.
Final settlement is deterministic and does not require user action.
Failure and Fallback Scenarios
If the underlying venue experiences an outage, feed interruption, or delayed resolution:
Multiply may temporarily pause new entries and adjustments (“close-only”).
Existing positions remain marked to the last known stable price.
If resolution is delayed, positions remain open until the venue publishes an authoritative result.
If the venue provides a corrected settlement result, Multiply adjusts PnL accordingly.
In a scenario where a hedge cannot be executed (venue unresponsive, no liquidity), Multiply refuses new entries and may restrict size reductions to maintain solvency.
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