Liquidation Risk

Multiply vaults open a debt position, which means your position can be liquidated if your loan-to-value ratio is above the liquidation threshold. This can occur if the borrow interest rate is higher than the LST yield for a sustained period of time, thus increasing your debt relative to the LST enough to reach the liquidation threshold. Liquidation can also occur if the LST platform's smart contract is exploited.

Depeg Risk


Kamino has an auto-deleverage mechanism that can systematically unwind debt and collateral in the protocol to ensure that there is a safe amount of any given asset on the balance sheet.

Deleveraging happens automatically, and typically leaves your position with a safer LTV. However, you are advised to check the Kamino socials regularly, where you will be notified of any margin call period before deleveraging begins.

Socialized Losses

If K-Lend incurs bad debt, the debt will be proportionally distributed amongst all users in the system. This will push all positions closer to their liquidation threshold, and may even lead to liquidation. To provide a buffer, you are advised to manage their position in such a way that extreme interest rates would not lead to liquidations.

Smart Contract Risk

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

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