Multiply positions function as leveraged debt arrangements that face liquidation if borrowing costs persistently exceed earnings, or when collateral value declines substantially relative to debt obligations.
Parameter Overview
SOL Multiply Risk Indicators
The primary risk metric for SOL Multiply is Net APY. When this drops below the Liquid Staking Token yield or becomes significantly negative, the position generates losses rather than gains.
Historical Risk Assessment
Each Multiply Vault displays Net APY trends across various leverage tiers. Historically, returns have remained positive with market mechanisms quickly resolving rate spikes.
JLP Multiply Risk Indicators
JLP Multiply risk centers on two critical parameters:
Loan-to-Value (LTV)
This metric represents debt relative to collateral. Higher LTV indicates greater exposure. When LTV reaches liquidation thresholds (marked as proximity to liquidation), approximately 2% of collateral becomes subject to liquidation.
Liquidation Price
This indicates the JLP price level triggering liquidation eligibility. As JLP declines versus USD, liquidation risk increases when price approaches this threshold.
Adjusting Risk Parameters
Leverage Reduction
Decreasing leverage creates safer positions with greater liquidation buffers:
- Total Collateral decreases
- Total Debt decreases
- LTV Ratio decreases
- Liquidation Price decreases
- Multiplier decreases
- Net APY typically decreases
Leverage Increase
Increasing leverage moves positions closer to liquidation thresholds:
- Total Collateral increases
- Total Debt increases
- LTV Ratio increases
- Liquidation Price increases
- Multiplier increases
- Net APY typically increases (varies with rate differentials)
Position Sizing Impact
Adjusting position size—depositing or withdrawing collateral—has minimal effect on position risk metrics. 
