Multiply positions carry liquidation risk. The higher the leverage, the smaller the buffer between your current LTV and the liquidation threshold. Borrow rates are variable — if they exceed collateral yield for a sustained period, your debt grows relative to your collateral.
- User specifies deposit amount and target leverage multiplier
- Protocol borrows the required additional amount via flash loan
- Flash-borrowed funds and user deposit are swapped into the target asset (e.g., SOL → JitoSOL) via Kamino Swap
- The full target asset amount is deposited into Kamino Lend as collateral
- The underlying asset (e.g., SOL) is borrowed against the deposited collateral
- Borrowed funds repay the flash loan
- Position is established at target leverage with collateral and debt recorded on Kamino Lend
Closing a position reverses this flow: flash loan borrows enough to repay the debt, collateral is withdrawn, a portion is swapped back to repay the flash loan, and the remainder is returned to the user.
Elevation Mode (eMode)
eMode groups correlated asset pairs under elevated LTV ratios. Standard lending markets limit LTV to protect against price divergence between collateral and debt assets — but when collateral and debt are closely correlated (e.g., JitoSOL and SOL), that divergence risk is minimal. eMode reflects this by raising the maximum permitted LTV.
| Mode | Example Pair | Max LTV | Max Leverage |
|---|
| Standard | SOL collateral / USDC debt | 75% | ~4x |
| eMode — Main Market | mSOL, bSOL, JupSOL vs SOL | ~87% | ~7.5x |
| eMode — Jito Market | JitoSOL vs SOL | 90% | 10x |
| No eMode | JLP vs USDC | 67% | ~3.2x |
eMode only applies between designated correlated pairs. JLP/USDC has no eMode because JLP’s value is not pegged to USDC — it tracks a basket of perpetuals market assets and fluctuates independently.
Net APY Mechanics
Multiply is profitable when collateral yield exceeds the borrow rate. Leverage amplifies both the gain and the loss symmetrically. See Net APY — the fundamental equation for the full breakdown across all strategy types.
Net APY = (Collateral Yield × Leverage) − (Borrow Rate × (Leverage − 1))
Net APY = Collateral Yield + Yield Spread × (Leverage − 1)
Where Yield Spread = Collateral Yield − Borrow Rate.
A positive spread grows larger with leverage. A negative spread grows more negative with leverage. There is no floor.
Worked example — 8x JitoSOL/SOL position:
| Metric | Value |
|---|
| Initial deposit | 1,000 SOL |
| Leverage | 8x |
| Total SOL exposure | 8,000 SOL |
| Total SOL debt | 7,000 SOL |
| LTV | 87.5% |
| JitoSOL APY | 7% |
| SOL borrow rate | 6% |
| Staking yield earned | 560 SOL |
| Borrow cost | 420 SOL |
| Net SOL earned | 140 SOL |
| Net APY on initial deposit | 14% |
Borrow rates on Kamino Lend are variable and adjust based on market utilization. If SOL borrow rate rises from 6% to 7.5% in this example while JitoSOL APY remains at 7%, the yield spread inverts and Net APY goes negative. Monitor the spread, not just the headline APY shown at position open.
Stake-Rate Oracle Protection
SOL LST Multiply positions use the stake pool exchange rate to price the LST collateral, not the spot market price. The exchange rate is derived from the underlying staking protocol:
LST Price = SOL_staked / LST_minted
Stake-rate oracle protection does not cover smart contract exploits in the underlying staking protocol. If the staking protocol itself is compromised and the actual SOL_staked value declines, the exchange rate falls and LTV deteriorates accordingly. This is an unmitigated risk in any LST position.
