Multiply positions are subject to the same liquidation rules as standard borrowing.
When the Health Factor drops below the safe threshold, part of your position may be automatically sold to restore balance.
The key difference is that leverage amplifies both profit and risk, so Multiply positions can reach liquidation faster during price drops.
The liquidation logic works exactly like in Borrow:
- Your position stays safe as long as your Health Factor > 1.0.
- If it falls below 1.0, a portion of your collateral is automatically sold to restore safety.
- Liquidation penalties remain below 0.1%
Higher leverage can boost returns, but also increases liquidation risk.
Example:
If you hold a 3× SOL Multiply position and SOL drops 20%, your exposure amplifies the loss, your Health Factor can drop sharply. Adding collateral or reducing leverage restores safety instantly.