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How it works

When you open a Multiply position, Kamino uses your deposit together with a flash loan to build the leveraged position in one transaction. The deposited and borrowed assets are swapped as needed, the collateral is supplied into Kamino Lend markets, debt is created against that collateral from the same markets, and the flash loan is repaid before the transaction finishes. If the transaction cannot complete successfully, the entire transaction reverts. In simple terms:
  1. You choose an asset and target leverage.
  2. Multiply borrows additional funds using a flash loan.
  3. Those funds are swapped into the target asset where needed.
  4. The full amount is deposited as collateral into Kamino Lend markets.
  5. Debt is created against that collateral.
  6. The flash loan is repaid in the same transaction.
  7. Your leveraged position is then active.
When you close a position, this process is reversed. Kamino repays the debt, withdraws the collateral, swaps what is needed, and returns the remaining value to you after the position is unwound.

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Leverage amplifies gains and losses

Multiply increases your exposure by using borrowed funds. This can improve returns when the position performs well, but it also increases risk. Gains and losses are both amplified by leverage.

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Borrow rates are variable

Every Multiply position includes debt, and that debt accrues interest at a variable borrow rate. If borrow costs rise above the yield your collateral generates for a sustained period, your net return can turn negative and your debt can grow relative to your collateral.

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eMode may increase available leverage

Some correlated asset pairs can use eMode, which allows higher LTVs and higher maximum leverage than standard pairs. This can make positions more capital efficient, but it also reduces the buffer between your current LTV and the liquidation threshold.

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Net APY is not fixed

Multiply returns depend on the relationship between collateral yield, borrow costs, and leverage. Kamino defines this through its Net APY mechanics, where leverage increases the effect of both positive and negative yield spread. This means quoted returns can change over time and are not guaranteed.