Risks

Liquidation Risk

Multiply vaults create a debt position, so liquidation can occur if the loan-to-value (LTV) exceeds the liquidation threshold. In SUI Multiply, this may happen when the borrow rate stays above the LST yield (Negative Net APY) for an extended period.

Depeg Risk

If the LST asset depegs and causes an oracle price change, the position’s LTV may rise above the Liq LTV, resulting in liquidation.

Auto Deleveraging

Current includes an auto-deleverage feature that systematically unwinds debt and collateral to keep each asset’s balance at safe levels. Deleveraging runs automatically and usually leaves the position with a lower, safer LTV. Users should always monitor Current’s social channels, where any margin-call window will be announced before deleveraging starts.

Smart Contract Risk

Liquid-staking tokens are issued by smart contracts outside of Current. Users are encouraged to do their own research regarding the safety of any products beyond Current.