Introduction

Using hedged synthetics to deliver clean leveraged exposure.

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Multiply provides leveraged directional exposure to external prediction markets through a synthetic Contract-for-Difference ("CFD") layer that operates on Polygon for Polymarket and Solana for Kalshi. Users trade via integrated front-ends, while Dimes constructs and manages the corresponding hedges on the underlying venues.

CFDs are the natural instrument for this use case. Alternative approaches — perps, collateral looping against outcome or options positions, and on-venue margin — each carry fundamental limitations in the context of prediction markets.

Perpetual futures require continuous two-sided liquidity to maintain a functioning funding rate. Prediction markets become structurally single-sided as resolution approaches — when an outcome becomes near-certain, the losing side vanishes. This collapses the funding mechanism and creates unbounded basis risk against the underlying at precisely the moment exposure matters most.

Pool-based collateral looping (i.e. borrowing against outcome positions to buy more) can technically produce leverage on fully collateralized prediction market contracts. But lending protocols follwing this approach are structurally blind to the asymmetric risk surface of prediction markets. They have no awareness of hazard windows, no mechanism to decay leverage ahead of resolution, and no ability to manage the liquidity microstructure evolution that makes losing-side depth vanish as outcomes become clearer. When a market jumps to settlement, looped collateral goes to zero and the lender absorbs the loss — with no netting, no systematic de-risking, and no deterministic unwind path to prevent it, creating a poor underwriting environment resulting in both capital loss for liquidity providers and higher borrowing costs for traders.

On-venue margin would require Kalshi and Polymarket to extend credit and manage liquidation infrastructure directly which is forbidden under CFTC rules.

CFDs avoid all of these: they deliver precise economic exposure to the underlying contract without requiring funding markets, dynamic hedging by the user, or venue-level credit extension.

CFDs are a well-established structure in TradFi, supporting hundreds of billions in annual notional by delivering economic exposure without transferring custody of the underlying instrument. Multiply applies the same principle onchain. Synthetic positions mirror the payoff of external prediction market contracts, while collateral management, PnL accounting, margining, and settlement are handled natively by Multiply's infrastructure.