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 conditions, probability region, and modeled unwind cost.

• Locked collateral remains onchain and cannot be withdrawn while the position is open.

Multiply continuously recomputes required margin based on:

• current venue prices

• exposure size and leverage

• leverage decay schedule

• modeled execution cost to unwind at current depth and spread

Marking to market and PnL updates

Multiply updates PnL and margin state in real time as the underlying prediction market price changes.

• When the price moves in the user's favor, their collateral buffer increases.

• When the price moves against them, their buffer shrinks.

The front-end receives a continuous feed of:

• current state of the leveraged position

• unrealized PnL

• remaining collateral buffer

• liquidation threshold

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.

Failure and fallback scenarios

If the underlying venue experiences an outage, feed interruption, or delayed resolution:

• Multiply may activate circuit breakers, pausing new entries and adjustments (close-only mode).

• Existing positions remain marked to the last known valid price.

• If unwind execution exceeds slippage bounds, protected unwind mode is engaged — execution proceeds incrementally, paced against available depth.

• 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.

If a hedge cannot be executed or unwound (venue unresponsive, depth collapsed), Multiply refuses new entries and may engage protected unwind mode or escalate per its incident response framework.