Frequently Asked Questions

How are swaps done?

When a Multiply position is created, debt will be generated against collateral and swapped through 1inch protocol for more collateral in order to gain higher exposure to the supplied collateral. Thanks to the 1inch integration, users will get the best possible prices across all markets.

What is buying power?

The Buying Power specifies the maximum of debt tokens that you can draw to buy more collateral with, based on your position. It is using Multiply and going from the current loan to value to the maximum loan to value possible before liquidation.

What is net value?

The Net Value is calculated as the current value of the collateral in your poisition minus the current debt express in USD. This will not be exactly equal to the amount you will receive if you close your position. This is due to fees applied when swapping collateral to repay the debt and because the Net Value is calculated using the mid-market price, and you may suffer a larger price impact if you have a large position to close.

What is price impact?

Price impact is the spread between the mid-price and the execution price of a trade as the size of the trade grows with respect to available liquidity. If trade size is big and liquidity shallow, the difference between mid-market price and execution price will be high, and the user will be negatively impacted. Thanks to 1inch integration, users can trade with confidence that the best liquidity sources will be used to get the best price possible.

What is slippage?

Transactions sent to the network may take some time to confirm and because of this trades may execute at a different price than the one expected. Slippage refers to the difference you are willing to accept between the quoted price and the execution prices due to differences in market conditions during transaction confirmation.

What does the multiple number mean?

Multiply allow increased exposure to collateral price movements. As such, the multiple number refers to how much more the position is expected to increase or decrease in value with respect to movements of the collateral. If multiple is 3x owners will get 3 times as much price appreciation as if it was only holding their initial collateral.

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