# Table of Contents - [What is Current | Current Finance Doc](#what-is-current-current-finance-doc) - [Product Overview | Current Finance Doc](#product-overview-current-finance-doc) - [Market | Current Finance Doc](#market-current-finance-doc) - [Supplying Assets | Current Finance Doc](#supplying-assets-current-finance-doc) - [Margin | Current Finance Doc](#margin-current-finance-doc) - [Borrowing Assets | Current Finance Doc](#borrowing-assets-current-finance-doc) - [Flash Loan | Current Finance Doc](#flash-loan-current-finance-doc) - [Interest Rate Model | Current Finance Doc](#interest-rate-model-current-finance-doc) - [Multiply | Current Finance Doc](#multiply-current-finance-doc) - [Opening a Position | Current Finance Doc](#opening-a-position-current-finance-doc) - [Risks | Current Finance Doc](#risks-current-finance-doc) - [Managing a Position | Current Finance Doc](#managing-a-position-current-finance-doc) - [How Does it Work? | Current Finance Doc](#how-does-it-work-current-finance-doc) - [Position Risk & Liquidations | Current Finance Doc](#position-risk-liquidations-current-finance-doc) - [Security Overview | Current Finance Doc](#security-overview-current-finance-doc) - [How It Work? | Current Finance Doc](#how-it-work-current-finance-doc) - [Risk Management Framework | Current Finance Doc](#risk-management-framework-current-finance-doc) - [Monitoring & Circuit Breakers | Current Finance Doc](#monitoring-circuit-breakers-current-finance-doc) - [Risks | Current Finance Doc](#risks-current-finance-doc) - [Audit Reports | Current Finance Doc](#audit-reports-current-finance-doc) - [Risk Disclosure | Current Finance Doc](#risk-disclosure-current-finance-doc) - [E-Mode | Current Finance Doc](#e-mode-current-finance-doc) - [FAQ | Current Finance Doc](#faq-current-finance-doc) - [Daily Caps | Current Finance Doc](#daily-caps-current-finance-doc) - [Referral | Current Finance Doc](#referral-current-finance-doc) - [Opening a Position | Current Finance Doc](#opening-a-position-current-finance-doc) - [Managing a Position | Current Finance Doc](#managing-a-position-current-finance-doc) - [Code Security & Formal Verification | Current Finance Doc](#code-security-formal-verification-current-finance-doc) - [FLP-1: Founding Liquidity Partner | Current Finance Doc](#flp-1-founding-liquidity-partner-current-finance-doc) - [Current Points | Current Finance Doc](#current-points-current-finance-doc) - [ADL (Automated Deleverage) | Current Finance Doc](#adl-automated-deleverage-current-finance-doc) - [Season 1 | Current Finance Doc](#season-1-current-finance-doc) - [Farm Multiply points + stSUI yield | Current Finance Doc](#farm-multiply-points-stsui-yield-current-finance-doc) - [The Sleep-Well System Playbook | Current Finance Doc](#the-sleep-well-system-playbook-current-finance-doc) --- # What is Current | Current Finance Doc [hashtag](https://current-finance.gitbook.io/current/#what-is-current) What is Current? -------------------------------------------------------------------------------------------- Built around isolated lending markets and flash-loan-powered leverage, Current lets anyone amplify yield or trade with size—safely and transparently. Lending, Margin, and Multiply all connect through the audited risk engine, unlock capital efficiency and transform SUI’s liquidity structure. [hashtag](https://current-finance.gitbook.io/current/#our-products) Our Products: -------------------------------------------------------------------------------------- ![Cover](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FTfofCpNdqImkAtbCXjVi%252FSlide%252016_9%2520-%2520146.png%3Falt%3Dmedia%26token%3Daee56d0c-f185-4e9c-9947-161f49a31705&width=490&dpr=3&quality=100&sign=7940a549&sv=2) Current Market ![Cover](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FWNA27B1EGXmFsCOAIcre%252FSlide%252016_9%2520-%2520147.png%3Falt%3Dmedia%26token%3D3feb25f4-e1b5-4e27-a274-ea28404c024d&width=490&dpr=3&quality=100&sign=48e71573&sv=2) Current Margin ![Cover](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FffPyGpu8ZI6x8SVxAOnx%252FSlide%252016_9%2520-%2520148.png%3Falt%3Dmedia%26token%3D5fdc05e9-e275-4621-9794-88e7ec82834e&width=490&dpr=3&quality=100&sign=dd1bbd44&sv=2) Current Multiply [NextProduct Overviewchevron-right](https://current-finance.gitbook.io/current/product/product-overview) Last updated 10 days ago * [What is Current?](https://current-finance.gitbook.io/current/#what-is-current) * [Our Products:](https://current-finance.gitbook.io/current/#our-products) sun-brightdesktopmoon sun-brightdesktopmoon --- # Product Overview | Current Finance Doc Current Protocol is a suite of DeFi products through which users can earn multiple sources of yield with same asset. Core product: * Current Market Two one-click leveraging products: * Current Margin * Current Mutiply [PreviousWhat is Currentchevron-left](https://current-finance.gitbook.io/current) [NextMarketchevron-right](https://current-finance.gitbook.io/current/product/market) Last updated 14 days ago sun-brightdesktopmoon sun-brightdesktopmoon --- # Market | Current Finance Doc It powers strategies like **Multiply** and **Margin**, while also serving as a stand-alone borrow/lend market. Built with isolated markets for stronger risk control and flash-loan capability, Current Market lets users earn supply APY while unlocking leveraged exposure from the same pool of assets. [PreviousProduct Overviewchevron-left](https://current-finance.gitbook.io/current/product/product-overview) [NextSupplying Assetschevron-right](https://current-finance.gitbook.io/current/product/market/supplying-assets) Last updated 14 days ago sun-brightdesktopmoon sun-brightdesktopmoon --- # Supplying Assets | Current Finance Doc Step 1:Click the Supply button ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252Fxbqw4eFn6LKIUTC8vMDu%252F1.png%3Falt%3Dmedia%26token%3Df1646a55-05ff-476b-9e20-0bf9205c06b8&width=768&dpr=3&quality=100&sign=a98addad&sv=2) Stpe 2: Input your supply amount ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FWlFg9GgdBy45vwzAyAEN%252F20251209-185403.jpeg%3Falt%3Dmedia%26token%3Db456dc61-69f7-4feb-b4f9-914c54a1d275&width=768&dpr=3&quality=100&sign=986a0ee5&sv=2) Step 3: Once supplied, you will see your Position Details appear at the top of page. Here you will be able to expand the card and view your LTV, all supplied assets and borrowed assets within one market. ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252Fk0YKw4HTOqwYqWyBCyDd%252F2.png%3Falt%3Dmedia%26token%3Dd54a22e6-6e99-46ff-863e-8c14dea504c8&width=768&dpr=3&quality=100&sign=2057b553&sv=2) ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FLLkudByiQZ1HbER4jLH1%252F3.png%3Falt%3Dmedia%26token%3D831d4466-e4be-4318-bd99-484f804ebb3d&width=768&dpr=3&quality=100&sign=53aad7b5&sv=2) circle-info Note: If you want to get more info about the market for a specific asset, you can click on the asset to go to its Market page. ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252F14ZGetjbcfTCUIksA7G4%252F4.png%3Falt%3Dmedia%26token%3D269a0240-3317-482b-b9a8-44ba751afe4f&width=768&dpr=3&quality=100&sign=5a630b46&sv=2) ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FmGYAwPRmsNgS5rBZiPfl%252F5.png%3Falt%3Dmedia%26token%3D463880c2-10cd-4d5a-a544-42f11d21563e&width=768&dpr=3&quality=100&sign=cd7d1286&sv=2) [PreviousMarketchevron-left](https://current-finance.gitbook.io/current/product/market) [NextBorrowing Assetschevron-right](https://current-finance.gitbook.io/current/product/market/borrowing-assets) Last updated 2 months ago sun-brightdesktopmoon sun-brightdesktopmoon --- # Margin | Current Finance Doc [How Does it Work?chevron-right](https://current-finance.gitbook.io/current/product/margin/how-does-it-work) [Opening a Positionchevron-right](https://current-finance.gitbook.io/current/product/margin/opening-a-position) [Managing a Positionchevron-right](https://current-finance.gitbook.io/current/product/margin/managing-a-position) [Riskschevron-right](https://current-finance.gitbook.io/current/product/margin/risks) [PreviousPosition Risk & Liquidationschevron-left](https://current-finance.gitbook.io/current/product/market/position-risk-and-liquidations) [NextHow Does it Work?chevron-right](https://current-finance.gitbook.io/current/product/margin/how-does-it-work) sun-brightdesktopmoon sun-brightdesktopmoon --- # Borrowing Assets | Current Finance Doc Step1: Click on Borrow button and input the amount youn want to borrow ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FdHlj3FTi0JEZaPiFiTbs%252F6.png%3Falt%3Dmedia%26token%3Dcbdf8e6c-68be-4a64-a01b-7cf5c22b1c5d&width=768&dpr=3&quality=100&sign=22955b77&sv=2) circle-info Note:A higher LTV moves your position closer to liquidation, whereas a lower LTV makes your position safer from liquidation. Stpe2: You can click the Manage button to manage your position ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FSOV5N9jcUU8e2XNGid51%252F7.png%3Falt%3Dmedia%26token%3D4d942072-669c-427a-8f5d-36c0df04c788&width=768&dpr=3&quality=100&sign=3ca04896&sv=2) Once borrowed you will see your Position Details appear at the top of page: ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FLLkudByiQZ1HbER4jLH1%252F3.png%3Falt%3Dmedia%26token%3D831d4466-e4be-4318-bd99-484f804ebb3d&width=768&dpr=3&quality=100&sign=53aad7b5&sv=2) [PreviousSupplying Assetschevron-left](https://current-finance.gitbook.io/current/product/market/supplying-assets) [NextInterest Rate Modelchevron-right](https://current-finance.gitbook.io/current/product/market/interest-rate-model) Last updated 2 months ago sun-brightdesktopmoon sun-brightdesktopmoon --- # Flash Loan | Current Finance Doc A flash loan temporarily takes cash from the pool without requiring collateral, as long as everything is paid back within the same transaction. Current will charge a flash-loan fee of 0.01% When a flash loan is initiated: 1. The protocol creates a “hot potato” object as proof that a flash loan is active. 2. This hot potato records: * The borrowed amount * The flash loan fee that must be paid By the end of the transaction: 1. The borrower must return the hot potato together with: * The full loan amount * The flash loan fee 1. If repayment does not happen in time, or the hot potato is not returned: * The entire transaction reverts * The loan is considered failed Operational Constraints: * A flash loan fails immediately if the requested amount exceeds the cash available in the pool. [PreviousInterest Rate Modelchevron-left](https://current-finance.gitbook.io/current/product/market/interest-rate-model) [NextPosition Risk & Liquidationschevron-right](https://current-finance.gitbook.io/current/product/market/position-risk-and-liquidations) Last updated 10 days ago sun-brightdesktopmoon sun-brightdesktopmoon --- # Interest Rate Model | Current Finance Doc The Current interest rate is determined by the Utilization Ratio (U). As U increases, the borrow interest rises, encouraging users to deposit more assets. When U = 100%, it means there are no assets left in the pool to be borrowed. ### [hashtag](https://current-finance.gitbook.io/current/product/market/interest-rate-model#utilization-ratio) Utilization Ratio Copy // // Utilization U = Borrows / (Cash + Borrows - Reserves) ### [hashtag](https://current-finance.gitbook.io/current/product/market/interest-rate-model#borrow-interest-rate) Borrow Interest Rate Copy BaseRate, Kink1, Kink2, Mult1, Mult2, Mult3 r_borrow(U) = BaseRate + U * Mult1, if U <= Kink1 BaseRate + Kink1 * Mult1 + (U - Kink1) * Mult2, if Kink1 < U <= Kink2 BaseRate + Kink1 * Mult1 + (Kink2 - Kink1) * Mult2 + (U - Kink2) * Mult3, if U > Kink2 ### [hashtag](https://current-finance.gitbook.io/current/product/market/interest-rate-model#supply-interest-rate) Supply Interest Rate ### [hashtag](https://current-finance.gitbook.io/current/product/market/interest-rate-model#interest-rate-spreads) Interest Rate Spreads Asset(s) Market Interest Rate Spreads SUI Main Market 11% USDC Main Market 15% USDT Main Market 15% BTC Main Market 15% ETH Main Market 15% SUI XSUI Marekt 2% DEEP Altcoin Market 20% WAL Altcoin Market 20% [PreviousBorrowing Assetschevron-left](https://current-finance.gitbook.io/current/product/market/borrowing-assets) [NextFlash Loanchevron-right](https://current-finance.gitbook.io/current/product/market/flash-loan) Last updated 14 days ago * [Utilization Ratio](https://current-finance.gitbook.io/current/product/market/interest-rate-model#utilization-ratio) * [Borrow Interest Rate](https://current-finance.gitbook.io/current/product/market/interest-rate-model#borrow-interest-rate) * [Supply Interest Rate](https://current-finance.gitbook.io/current/product/market/interest-rate-model#supply-interest-rate) * [Interest Rate Spreads](https://current-finance.gitbook.io/current/product/market/interest-rate-model#interest-rate-spreads) sun-brightdesktopmoon Copy // def Current supply interest rate(current borrow interest rate, U, reserve_factor,): Current supply interest rate = U * current borrow interest rate * (1 - reserve_factor) sun-brightdesktopmoon --- # Multiply | Current Finance Doc Multiply offers one-click leverage on yield-bearing assets. By combining Current-Lend primitives like E-Mode and cToken collateral, it delivers robust yield strategies in a single vault. [PreviousRiskschevron-left](https://current-finance.gitbook.io/current/product/margin/risks) [NextHow It Work?chevron-right](https://current-finance.gitbook.io/current/product/multiply/how-it-work) Last updated 14 days ago sun-brightdesktopmoon sun-brightdesktopmoon --- # Opening a Position | Current Finance Doc In margin trade, a user inputs their deposit token amount and target leverage . Using these values, the protocol can identify how much target token needs to be borrowed in the flash loan. if user chooses to long SUI/USDC.Then: 1. USDC is borrowed 2. USDC is swapped to SUI 3. SUI is supplied in Current-Lend 4. USDC is borrowed against SUI 5. Borrowed USDC is used to repay the initial flash loan 6. Position is open at target leverage ### [hashtag](https://current-finance.gitbook.io/current/product/margin/opening-a-position#how-to-open-a-margin-trade-position) How to open a Margin Trade Position Step 1:Select Token Pair, Long/Short and Leverage. Step2:Select your deposit token ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252F6Y7aMZ5rf3uSFdC6ilEz%252Fimage.png%3Falt%3Dmedia%26token%3Dfac37931-eb08-4cf8-8951-82223629a272&width=768&dpr=3&quality=100&sign=c1c55360&sv=2) You can check your positions on the dashboard. ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252F6LbEoniDBvLOMBrpTMFo%252Fimage.png%3Falt%3Dmedia%26token%3Dd6533568-dd36-4a37-a552-8e3f17b183ff&width=768&dpr=3&quality=100&sign=7af192d&sv=2) [PreviousHow Does it Work?chevron-left](https://current-finance.gitbook.io/current/product/margin/how-does-it-work) [NextManaging a Positionchevron-right](https://current-finance.gitbook.io/current/product/margin/managing-a-position) Last updated 2 months ago sun-brightdesktopmoon sun-brightdesktopmoon --- # Risks | Current Finance Doc ### [hashtag](https://current-finance.gitbook.io/current/product/margin/risks#liquidation-risk) Liquidation Risk Margin Trade create a debt position, so liquidation can occur if the loan-to-value (LTV) exceeds the liquidation threshold. ### [hashtag](https://current-finance.gitbook.io/current/product/margin/risks#depeg-risk) Depeg Risk If the asset depegs(eg:USDC) and causes an oracle price change, the position’s LTV may rise above the Liq LTV, resulting in liquidation. ### [hashtag](https://current-finance.gitbook.io/current/product/margin/risks#auto-deleveraging) 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. ### [hashtag](https://current-finance.gitbook.io/current/product/margin/risks#smart-contract-risk) [PreviousManaging a Positionchevron-left](https://current-finance.gitbook.io/current/product/margin/managing-a-position) [NextMultiplychevron-right](https://current-finance.gitbook.io/current/product/multiply) Last updated 14 days ago * [Liquidation Risk](https://current-finance.gitbook.io/current/product/margin/risks#liquidation-risk) * [Depeg Risk](https://current-finance.gitbook.io/current/product/margin/risks#depeg-risk) * [Auto Deleveraging](https://current-finance.gitbook.io/current/product/margin/risks#auto-deleveraging) * [](https://current-finance.gitbook.io/current/product/margin/risks#smart-contract-risk) sun-brightdesktopmoon sun-brightdesktopmoon --- # Managing a Position | Current Finance Doc ### [hashtag](https://current-finance.gitbook.io/current/product/margin/managing-a-position#id-2.-use-the-manage-module-to-manage-your-position) Use the Manage module to manage your position ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252Fzuvf4YgEbV8YiCTzQ00C%252Fimage.png%3Falt%3Dmedia%26token%3D7a131a67-d348-4a1a-b911-e0d21ec17545&width=768&dpr=3&quality=100&sign=1bd3e972&sv=2) #### [hashtag](https://current-finance.gitbook.io/current/product/margin/managing-a-position#increase-or-decrease-size) Increase or Decrease Size You can top up or reduce your position whenever it’s open. #### [hashtag](https://current-finance.gitbook.io/current/product/margin/managing-a-position#adjust-leverage) Adjust Leverage You can adjust your Margin Trade leverage at any time. This will adjust the amount of collateral and debt in your position, and will change your LTV. [PreviousOpening a Positionchevron-left](https://current-finance.gitbook.io/current/product/margin/opening-a-position) [NextRiskschevron-right](https://current-finance.gitbook.io/current/product/margin/risks) Last updated 2 months ago sun-brightdesktopmoon Copy Note:Adjusting position size has no impact on the leverage and risk of your position Copy // Lower leverage = lower LTV Higher leverage = higher LTV sun-brightdesktopmoon --- # How Does it Work? | Current Finance Doc Margin Trade allows users to long/short specific pairs, such as SUI/USDC, ETH/USDC, and WBTC/ETH with leverage. When Net APY is positive, the user’s deposit interest exceeds their borrowing interest, so the user does not need to pay any fees for the position. Example: Copy // A user has 5 SUI and chooses to short SUI/USDC(3X Leverage) Let's say: `1SUI=2USDC and No price slippage` `For User:` `User Final Position:` * `Supply=30USDC` * `Borrow=10SUI` * `Net Value=$10` Notes:If the supply interest on 30 USDC exceeds the borrow interest on 10 SUI (i.e., Net APY > 0), the user will earn interest. `For Market:` State Asset Supply Borrow Utilization ratio Before SUI 100 30 30% Before USDC 100 40 40% After SUI 100 40 40% After USDC 130 40 30.77% * Market Total Supply:$300 to $330 * Market Total Borrow:$100 to $120 [PreviousMarginchevron-left](https://current-finance.gitbook.io/current/product/margin) [NextOpening a Positionchevron-right](https://current-finance.gitbook.io/current/product/margin/opening-a-position) Last updated 2 months ago sun-brightdesktopmoon sun-brightdesktopmoon --- # Position Risk & Liquidations | Current Finance Doc ### [hashtag](https://current-finance.gitbook.io/current/product/market/position-risk-and-liquidations#position-risk) Position Risk In Current Lend, position risk is captured by the loan-to-value (LTV) ratio Copy Current LTV=(risk_adjusted_debt_value / collateral_value) * 100% risk adjusted_debt_value=debt value* borrow weight collateral_value = Σ(collateral_amount_j × price_j) circle-info Notes: Borrowers have three different `LTV_ratios` that expresses the risk of their position: * **Current LTV** = Current position health * **Max LTV** \= Borrowing limit of your position - gives a buffer between Liquidation LTV * **Liquidation LTV** = The LTV at which your position becomes eligible for liquidation ### [hashtag](https://current-finance.gitbook.io/current/product/market/position-risk-and-liquidations#borrow-weight) **Borrow Weight** Borrow Weight (BW) are risk-adjusted values set per asset on Current-Lend that define how much of that asset can count toward a loan’s borrowing power. Example： For example, let’s assume you want to supply $100 of USDC as collateral and borrow either SUI or DEEP. * USDC MAX LTV=80% * SUI borrow weight=1 * DEEP borrow weight=1.3 * SUI borrow capacity against USDC = ($100 \* 80%) / 1 = $80 * DEEP borrow capacity against USDC=($100 \* 80%) / 1 .3= $61.5 ### [hashtag](https://current-finance.gitbook.io/current/product/market/position-risk-and-liquidations#liquidation) Liquidation If any debt position reaches the Liquidation LTV threshold, it becomes eligible for liquidation. #### [hashtag](https://current-finance.gitbook.io/current/product/market/position-risk-and-liquidations#partial-liquidations) Partial Liquidations To protect borrowers’ interests, Current adopts a soft-liquidation model. The **Close Factor** determines the share of a borrower’s position that a liquidator can liquidate in a single transaction. For example, if **Close Factor = 0.2**, a liquidator can liquidate at most **20%** of the borrower’s collateral at a time. #### [hashtag](https://current-finance.gitbook.io/current/product/market/position-risk-and-liquidations#liquidation-penalties) Liquidation Penalties The Current protocol sets liquidation penalties with different parameters for each token, based on factors such as liquidity, volatility, and others. **Example:** Assume a 5% liquidation penalty and close factor=20%. When User A’s loan hits the 80% liquidation LTV, a liquidator steps in and repays **20%** of the debt, receiving **21%** of the collateral in return (0.2\*(1+0.05)). User A ends up with less collateral and less debt, a lower LTV, and the position stays open. Asset(s) Market Liqudation Penalty SUI Main Market 6% USDC Main Market 5% USDT Main Market 5% WBTC Main Market 7% ETH Main Market 8% SUI XSUI Market 5% STSUI XSUI Market 7% HASUI XSUI Market 7% SUI-STSUI XSUI Market 5% HASUI-SUI XSUI Market 5% USDC Altcoin Marke 5% DEEP Altcoin Market 9% WAL Altcoin Market 9% [PreviousFlash Loanchevron-left](https://current-finance.gitbook.io/current/product/market/flash-loan) [NextMarginchevron-right](https://current-finance.gitbook.io/current/product/margin) Last updated 14 days ago * [Position Risk](https://current-finance.gitbook.io/current/product/market/position-risk-and-liquidations#position-risk) * [Borrow Weight](https://current-finance.gitbook.io/current/product/market/position-risk-and-liquidations#borrow-weight) * [Liquidation](https://current-finance.gitbook.io/current/product/market/position-risk-and-liquidations#liquidation) sun-brightdesktopmoon sun-brightdesktopmoon --- # Security Overview | Current Finance Doc ![Page cover](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252F6l4CflWv0xPJtbep9Zm7%252FFrame%2520143727791.png%3Falt%3Dmedia%26token%3Df3ccc7ac-f8bd-4dab-9f32-0c53daedf079&width=1248&dpr=3&quality=100&sign=813598ee&sv=2) At Current, security is woven into the fabric of the protocol. From code design to risk management, every aspect is crafted to ensure resilience and trust. Our commitment to security is backed by a track record of thorough audits, continuous monitoring, and ongoing partnerships with leading security firms. Key aspects of our security framework include: 1. **Code Security & Formal Verification** 2. **Risk Management Framework** 3. **Monitoring & Circuit Breakers** 4. **Governance & Asset Onboarding** Rather than relying on point-in-time audits, our security framework creates a continuous loop of assurance. The same teams that built and audited the protocol remain involved in every update, ensuring that every release builds on the lessons and insights from the previous version. [PreviousRiskschevron-left](https://current-finance.gitbook.io/current/product/multiply/risks) [NextCode Security & Formal Verificationchevron-right](https://current-finance.gitbook.io/current/security-and-risk/code-security-and-formal-verification) Last updated 1 day ago sun-brightdesktopmoon sun-brightdesktopmoon --- # How It Work? | Current Finance Doc Multiply lets users open leveraged positions by borrowing the underlying asset to boost exposure to a yield-bearing asset—for example, borrowing SUI to increase exposure to STSUI. This is enabled by two Current-Lending mechanisms: eMode and flash loans. A user earns yield whenever the APY on the yield-bearing asset exceeds the borrow APY. While the user’s Net APY is positive, the position’s SUI balance should increase. ### [hashtag](https://current-finance.gitbook.io/current/product/multiply/how-it-work#example) Example A user has 1000SUI,They deposit their SUI into a HASUI/SUI Multiply vault. They set an 8x Multiplier. **Now, let's say:** * `HASUI/SUI price ratio = 1.1` * `HASUI APY = 3%` * `SUI borrow rate = 2%` **Thus, user's position:** User made a 1000 SUI Deposit, with 8x leverage * `Total SUI Exposure: 1000 * 8 =` `**8000 SUI collateral**` `(Note: 8000 SUI = 7272 HASUI)` * `Total SUI Debt = Total Exposure - Initial Deposit Total SUI Debt = 8000 - 1000 =` `**7000 SUI debt**` * `LTV: Debt / Collateral LTV: 7000 / 8000 =` `**87.5% LTV**` `HASUI APY = 3% :: 8000 * 3% = 240 SUI - Earned from Staking APY` `Borrow APY = 2% :: 7000 * 2% = 140 SUI - Paid in Borrow Rate` `**Net SUI Earned**` `= 240 - 140= 100SUI` `Net APY = Net SUI Earned / Initial Deposit = 100 / 1000 =` `**10%**` [PreviousMultiplychevron-left](https://current-finance.gitbook.io/current/product/multiply) [NextOpening a Positionchevron-right](https://current-finance.gitbook.io/current/product/multiply/opening-a-position) Last updated 14 days ago sun-brightdesktopmoon sun-brightdesktopmoon --- # Risk Management Framework | Current Finance Doc To secure liquidity on the protocol, Current partners with Allez Labs to architect and oversee our dynamic risk parameters. By integrating their quantitative simulations, Current continuously stress-tests all liquidation thresholds and interest rate curves. This framework is designed to ensure that our high-leverage looping mechanisms remain resilient against cascading liquidations, flash loan exploits, and oracle manipulations. #### [hashtag](https://current-finance.gitbook.io/current/security-and-risk/risk-management-framework#id-1.-prelaunch-phase-protocol-validation) 1\. Prelaunch Phase (Protocol Validation) **Mechanism Review:** Auditing economic models and Auto-Deleveraging (ADL) designs to identify and mitigate systemic risks. **Oracle Infrastructure:** Finalizing oracle architectures, configurations, thresholds, and logic across all collateral assets. **Risk Calibration:** Calculating and setting exact Loan-to-Value (LTV) ratios, liquidation thresholds, reserve factors, and volatility buffers prior to market deployment. #### [hashtag](https://current-finance.gitbook.io/current/security-and-risk/risk-management-framework#id-2.-post-launch-real-time-monitoring) 2\. Post-Launch (Real-Time Monitoring) **System Deployment:** Building core risk infrastructure, including real-time risk dashboards, price oracle integrations, and liquidity monitoring systems **Active Oversight:** Continuously monitoring protocol exposures, identifying emerging market risks, and coordinating emergency response processes via structured weekly and quarterly reviews. **Transparency:** Maintaining data dashboards, conducting competitor benchmarking, and publishing data-driven risk updates for the community. #### [hashtag](https://current-finance.gitbook.io/current/security-and-risk/risk-management-framework#id-3.-ongoing-asset-scaling-and-governance) 3\. Ongoing (Asset Scaling & Governance) Transparency: Designing precise configurations for onboarding new assets and deploying new lending markets. Token Evaluation: Applying Allez Labs' proprietary risk-scoring methodology to dictate supply caps, borrowing limits, and parameterization for all newly proposed tokens. [PreviousCode Security & Formal Verificationchevron-left](https://current-finance.gitbook.io/current/security-and-risk/code-security-and-formal-verification) [NextMonitoring & Circuit Breakerschevron-right](https://current-finance.gitbook.io/current/security-and-risk/monitoring-and-circuit-breakers) Last updated 1 day ago sun-brightdesktopmoon sun-brightdesktopmoon --- # Monitoring & Circuit Breakers | Current Finance Doc Current mitigates risk with a real-time monitoring dashboard that continuously tracks protocol health across oracles, liquidity, and solvency. We run **3 on-chain circuit breakers**, **monitor an alert stack of 5 CRITICAL signals** (sub-5-minute response), **13 WARNING signals** (15–60 minute response), and **6 INFO indicators** for daily review. Critical checks run every 1 minute, warning checks run every 5 minutes. Baseline (reference benchmarks) (e.g., liquidation volume) are calibrated using a 90-day rolling average (bootstrap threshold applied until sufficient data). ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252Fxso1ChCYC8EypV00giq5%252FFrame%2520143727958.png%3Falt%3Dmedia%26token%3D88a425fc-9290-4ac3-8108-608416f49c3c&width=768&dpr=3&quality=100&sign=a7c4b445&sv=2) _\*Dashboard open to public access soon._ * * * #### [hashtag](https://current-finance.gitbook.io/current/security-and-risk/monitoring-and-circuit-breakers#critical-alerts-details) CRITICAL alerts Details * Bad debt detected * Accounting mismatch * Stablecoin depeg severe (>5% sustained) * LST below redemption sustained (>5% sustained) * Sustained oracle degradation (Pyth confidence >tolerance for >10 min) circle-info _The first two indicate funds are already at risk. The remaining three indicate conditions where user fund loss is the direct consequence if unaddressed._ #### [hashtag](https://current-finance.gitbook.io/current/security-and-risk/monitoring-and-circuit-breakers#warning-alerts-details) WARNING alerts Details Liquidation cascade, supply/borrow ratio declining, elevated liquidation volume, EMA/Spot divergence rising, early depeg signals (stablecoin + LST), stablecoin depeg sustained (2%), crank bot failure, utilisation, DEX liquidity, liquidator margins, position concentration, cap usage circle-info Unified decision layer owning compound alert escalation (≥3 WARNINGs on same market → CRITICAL), depeg classification, and price bounds management (post-launch, pending engineering) #### [hashtag](https://current-finance.gitbook.io/current/security-and-risk/monitoring-and-circuit-breakers#id-3-automatic-on-chain-circuit-breakers) 3 automatic on-chain circuit breakers * Price validity checks (staleness, confidence, zero/negative) * EMA/Spot divergence block (per-market, configurable) * Accounting invariant check [PreviousRisk Management Frameworkchevron-left](https://current-finance.gitbook.io/current/security-and-risk/risk-management-framework) [NextRisk Disclosurechevron-right](https://current-finance.gitbook.io/current/security-and-risk/risk-disclosure) Last updated 1 day ago sun-brightdesktopmoon sun-brightdesktopmoon --- # Risks | Current Finance Doc ### [hashtag](https://current-finance.gitbook.io/current/product/multiply/risks#liquidation-risk) 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. ### [hashtag](https://current-finance.gitbook.io/current/product/multiply/risks#depeg-risk) 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. ### [hashtag](https://current-finance.gitbook.io/current/product/multiply/risks#auto-deleveraging) 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. ### [hashtag](https://current-finance.gitbook.io/current/product/multiply/risks#smart-contract-risk) 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. [arrow-up-right](https://docs.kamino.finance/products/multiply/unwinding-a-position/unwinding-jlp-multiply) [PreviousManaging a Positionchevron-left](https://current-finance.gitbook.io/current/product/multiply/managing-a-position) [NextSecurity Overviewchevron-right](https://current-finance.gitbook.io/current/security-and-risk/security-overview) Last updated 14 days ago * [Liquidation Risk](https://current-finance.gitbook.io/current/product/multiply/risks#liquidation-risk) * [Depeg Risk](https://current-finance.gitbook.io/current/product/multiply/risks#depeg-risk) * [Auto Deleveraging](https://current-finance.gitbook.io/current/product/multiply/risks#auto-deleveraging) * [Smart Contract Risk](https://current-finance.gitbook.io/current/product/multiply/risks#smart-contract-risk) sun-brightdesktopmoon sun-brightdesktopmoon --- # Audit Reports | Current Finance Doc file-pdf 362KB [Audit-Governance-Movebit.pdf](https://3100585553-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FcyFYP8iHb4FhO8wkEH9r%2Fuploads%2FzLG2nfOoy3aJNC2WUHiv%2FAudit-Governance-Movebit.pdf?alt=media&token=6c8edf31-f671-4b9d-a7f9-f99aa4396588) PDF downloadDownload[arrow-up-right-from-squareOpen](https://3100585553-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FcyFYP8iHb4FhO8wkEH9r%2Fuploads%2FzLG2nfOoy3aJNC2WUHiv%2FAudit-Governance-Movebit.pdf?alt=media&token=6c8edf31-f671-4b9d-a7f9-f99aa4396588) file-pdf 89KB [Audit-Gov and Lev-Aymptotic.pdf](https://3100585553-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FcyFYP8iHb4FhO8wkEH9r%2Fuploads%2FrnBTo53HRl5MG0K1OC8l%2FAudit-Gov%20and%20Lev-Aymptotic.pdf?alt=media&token=7436fc2e-56f9-4e18-9db9-f84f7c240328) PDF downloadDownload[arrow-up-right-from-squareOpen](https://3100585553-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FcyFYP8iHb4FhO8wkEH9r%2Fuploads%2FrnBTo53HRl5MG0K1OC8l%2FAudit-Gov%20and%20Lev-Aymptotic.pdf?alt=media&token=7436fc2e-56f9-4e18-9db9-f84f7c240328) file-pdf 152KB [Audit-Lending-Asymptotic.pdf](https://3100585553-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FcyFYP8iHb4FhO8wkEH9r%2Fuploads%2F9VYCu4ysghEVzJ5b8BWL%2FAudit-Lending-Asymptotic.pdf?alt=media&token=5afa144f-67db-40a8-a54f-602aa98d628f) PDF downloadDownload[arrow-up-right-from-squareOpen](https://3100585553-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FcyFYP8iHb4FhO8wkEH9r%2Fuploads%2F9VYCu4ysghEVzJ5b8BWL%2FAudit-Lending-Asymptotic.pdf?alt=media&token=5afa144f-67db-40a8-a54f-602aa98d628f) [PreviousRisk Disclosurechevron-left](https://current-finance.gitbook.io/current/security-and-risk/risk-disclosure) [NextFLP-1: Founding Liquidity Partnerchevron-right](https://current-finance.gitbook.io/current/incentives/flp-1-founding-liquidity-partner) Last updated 3 days ago sun-brightdesktopmoon sun-brightdesktopmoon --- # Risk Disclosure | Current Finance Doc ### [hashtag](https://current-finance.gitbook.io/current/security-and-risk/risk-disclosure#oracle-security) Oracle Security Current relies on Pyth for their price feeds.In the future, our proprietary oracle will be the main source of price data, while Pyth will be used as a secondary reference for validation. #### [hashtag](https://current-finance.gitbook.io/current/security-and-risk/risk-disclosure#ema-and-spot-price) EMA and Spot Price In decentralized oracles, the Spot Price provides the immediate price from on-chain/off-chain matching markets. It updates fastest but is more susceptible to short-term volatility and manipulation. The EMA (Exponential Moving Average) applies exponentially decaying weights to recent prices to smooth noise and reduce outliers, at the cost of some lag. In Current, oracles combine both: use EMA as the primary valuation anchor (for collateral pricing, LTV calculations, and liquidation triggers) and use Spot Price as a fast signal (to detect sudden moves, monitor depegs/extreme volatility, and trigger safety switches). * * * ### [hashtag](https://current-finance.gitbook.io/current/security-and-risk/risk-disclosure#assets-risk) Assets Risk At the token level, we believe each asset carries the following risks: 1. **Oracle price risk** Current has taken multiple measures to reduce oracle quotation risk, but it cannot guarantee 100% that the protocol will always accept a correct price or reject an incorrect one. 2. **Smart contract risk** Although tokens listed on Current undergo rigorous reviews, users should understand that any smart contract may be exploited, potentially leading to significant price volatility. 3. **Depeg risk** For stablecoins and LST assets, depegging events (e.g., UST’s depeg) are a major risk and can cause substantial losses to both users and the protocol. * * * ### [hashtag](https://current-finance.gitbook.io/current/security-and-risk/risk-disclosure#market-risk) Market Risk The core market risk for a lending protocol is whether liquidators can complete the liquidation arbitrage via flash loans or other means. If liquidators are unable to carry out this arbitrage, the platform may incur bad debt due to market risk. Current will monitor the following token metrics and use various proactive management measures (e.g., adjusting protocol parameters, performing ADL) to prevent this issue. 1. **Token Volatility** Because loans are only liquidated once they hit the liquidation threshold, token volatility must be fully considered when setting the Liq LTV. Current uses Parkinson’s Volatility to measure this. Copy // def parkinson_vol(high: np.ndarray, low: np.ndarray) -> float: """ Parkinson's volatility (per your formula): sqrt( (1/N) * sum_i [ ln(Hi / Li) ]^2 ) """ high = np.asarray(high, dtype=float) low = np.asarray(low, dtype=float) if high.shape != low.shape: raise ValueError("high and low must have the same shape") if np.any(low <= 0) or np.any(high <= 0): raise ValueError("prices must be positive") log_hl = np.log(high / low) return np.sqrt(np.mean(log_hl ** 2)) 1. **Token Liquidity** Monitoring a token’s liquidity is also a key factor in ensuring successful liquidations. We will track the following indicators to make sure the token has sufficient liquidity: * Hourly trading volumes (accounting for wash trading) * Immediate price impact of token swaps (across a range of USD-valued sizes) * Price resilience post-token swap 1. **Trading Volumes** Trading volume reflects market activity and how easy it is to buy and sell a token; it is a useful measure of token liquidity. High trading volume indicates: * Substantial liquidity * Narrower bid–ask spreads * Reduced price slippage * Continuous trading We will monitor the above indicators to ensure users can trade with low slippage. 1. **Price Impact Analysis** The potential price impact of liquidation is quantified using on-chain data, which is continuously fed into the model. By monitoring these indicators and executing ADL, we will ensure the protocol does not incur bad debt. 1. **Market Capitalization** In principle, tokens with higher market capitalization tend to have better liquidity and lower risk. If the listed token has an locked portion outstanding, it will be accounted for with a weighting adjustment. 1. **Relation to Other Tokens** When introducing a new asset to the protocol, we will fully consider its relationship with existing assets to ensure that the new asset’s price volatility does not significantly impact the assets already in the protocol. [PreviousMonitoring & Circuit Breakerschevron-left](https://current-finance.gitbook.io/current/security-and-risk/monitoring-and-circuit-breakers) [NextAudit Reportschevron-right](https://current-finance.gitbook.io/current/security-and-risk/audit-reports) Last updated 1 day ago * [Oracle Security](https://current-finance.gitbook.io/current/security-and-risk/risk-disclosure#oracle-security) * [Assets Risk](https://current-finance.gitbook.io/current/security-and-risk/risk-disclosure#assets-risk) * [Market Risk](https://current-finance.gitbook.io/current/security-and-risk/risk-disclosure#market-risk) sun-brightdesktopmoon sun-brightdesktopmoon --- # E-Mode | Current Finance Doc E-Mode is a new risk-management mode first introduced in Aave V3 and now widely adopted across mature DeFi protocols. In Current Lending, E-Mode allows users to borrow highly correlated or soft-pegged assets at a more efficient loan-to-value (LTV). We group certain assets into eGroups (e.g., _LST SUI–SUI_), and these eGroups can be assigned higher LTVs and liquidation thresholds, enabling users to unlock greater leverage. For example, SUI and LST-SUI are grouped into a single eGroup with a 95% collateral factor, letting users using Current Portal Multiply achieve higher capital efficiency than on other protocols. ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FSSVPgbrEwFfvx5jf0iu2%252Fimage.png%3Falt%3Dmedia%26token%3D1d21c375-6a4b-4d35-aefa-565043fe6eba&width=768&dpr=3&quality=100&sign=211a1b45&sv=2) [PreviousDaily Capschevron-left](https://current-finance.gitbook.io/current/protocol-mechanism/daily-caps) [NextFAQchevron-right](https://current-finance.gitbook.io/current/faq) Last updated 10 days ago sun-brightdesktopmoon sun-brightdesktopmoon --- # FAQ | Current Finance Doc chevron-rightQuesiton: What is the different between Current Margin and Perp Dex?[hashtag](https://current-finance.gitbook.io/current/faq#quesiton-what-is-the-different-between-current-margin-and-perp-dex) **Answer**: In Current Margin, the protocol borrows spot assets from the lending market, performs a flash-loan-enabled swap, and creates a leveraged spot position. Collateral, debt, and liquidation all follow the same LTV framework as Current Market, thus leverage level is relatively low. User earns yield from their supplied collateral and pays interest for their debt. net APY = Supply APY - Borrow APY. If your net APY is positive, your position pays for itself — trade with no funding cost! Perp DEXs create virtual positions that depend on funding rates and AMM/PnL mechanics. Take-away: Current Margin's funding fee is more preditable and much lower compared to CEX Margin and Perp Dex, but max leverage level is lower, more suitable for users favoring long term leveraged exposure. chevron-rightQ: Is Current Multiply just looping?[hashtag](https://current-finance.gitbook.io/current/faq#q-is-current-multiply-just-looping) **Answer:** Multiply is fundamentally different from manual looping. It can reach up to 16× leverage in a single transaction, while looping usually can’t get close due to repeated LTV constraints. Multiply combines Current-Lend primitives — E-Mode + flash loans — inside a single vault: E-Mode: enables higher effective LTV than base collateral settings Flash loans: enable leveraged exposure atomically (no multi-step looping) Multiply profitability is entirely driven by Net APY. Multiply is currently long-only. Higher leverage increases LTV and reduces your safety buffer. chevron-rightQ: Why USDC stats differ on Main vs Alt market[hashtag](https://current-finance.gitbook.io/current/faq#q-why-usdc-stats-differ-on-main-vs-alt-market) **Answer**: Current lending uses an isolated market design. Even if both USDC markets are in liquidity mining, their liquidity and borrowing demand differ, so stats won’t match. chevron-rightQ: Why can't I borrow and supply at the same time?[hashtag](https://current-finance.gitbook.io/current/faq#q-why-cant-i-borrow-and-supply-at-the-same-time) **Answer**: For safety and protocol robustness, each Current Market only allows lending and borrowing of an asset in one direction at a time. This prevents circular positions and reduces systemic risk. For users who want two-sided exposure—for example, to participate in liquidity mining on both the long and short side—they can instead open a leveraged position through Current Margin chevron-rightQ: Why there is no stop-loss, take profit options?[hashtag](https://current-finance.gitbook.io/current/faq#q-why-there-is-no-stop-loss-take-profit-options) As a decentralized lending system, Current chooses not to take control of user assets. Implementing SL/TP requires authorization that conflicts with decentralization. Additionally, Current’s model (collateral + debt lending) is different from order-book trading. chevron-rightQ: Why does my 4X margin position only have a 7% liquidation buffer?[hashtag](https://current-finance.gitbook.io/current/faq#q-why-does-my-4x-margin-position-only-have-a-7-liquidation-buffer) Current Margin leverage relies on flash loan in lending market. Each asset has its own Liq LTV and Borrow Weight, liquidation is determined by these parameters—not by leverage alone. LTV is calculated using risk-adjusted debt. If your borrowed asset has a high Borrow Weight (e.g., 1.3), $100 of nominal debt is treated as $130 in risk terms — pushing LTV higher than basic math would suggest. [PreviousE-Modechevron-left](https://current-finance.gitbook.io/current/protocol-mechanism/daily-caps/e-mode) [NextSeason 1chevron-right](https://current-finance.gitbook.io/current/playbook/season-1) Last updated 9 days ago sun-brightdesktopmoon sun-brightdesktopmoon --- # Daily Caps | Current Finance Doc Daily caps are the amount of an asset that can leave the system over a 24-hour period. There are two caps for each asset reserve: * New Debt Limit: Net amount of an asset that can be borrowed * Daily New Withdraw Cap: Net amount of a collateral that can leave the system ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FlpuBwt5cZeUrHlxFPS7q%252Fimage.png%3Falt%3Dmedia%26token%3D76a05c10-4415-4e03-bf99-c6b2a8d08840&width=768&dpr=3&quality=100&sign=31bf4673&sv=2) Daily Caps protect both the protocol and users by: * Preventing any single asset from being rapidly drained—limiting potential losses in the event of an oracle exploit. * Forcing large debt positions to accumulate gradually, so their impact on system health can be monitored over time. [PreviousADL (Automated Deleverage)chevron-left](https://current-finance.gitbook.io/current/protocol-mechanism/adl-automated-deleverage) [NextE-Modechevron-right](https://current-finance.gitbook.io/current/protocol-mechanism/daily-caps/e-mode) Last updated 14 days ago sun-brightdesktopmoon sun-brightdesktopmoon --- # Referral | Current Finance Doc ### [hashtag](https://current-finance.gitbook.io/current/incentives/referral#how-referrals-work) **How Referrals Work** **1\. Create Your Own Referral Code** * You can generate a personal referral code once you meet the eligibility requirement. * When another trader uses your referral code, **you earn 10% of their flash loan fees**. ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252F9GqykBrX4t0BFEVRFGFF%252Fimage.png%3Falt%3Dmedia%26token%3D51eb62f0-c4d2-481a-adb8-5efd18e9c2a6&width=768&dpr=3&quality=100&sign=78313ffa&sv=2) **2\. Use a Referral Code** * When you trade using another user’s referral code, **you receive a 4% rebate on your own flash loan fees**. ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252Fp53WnvvbiwrAw6UEke1H%252Fimage.png%3Falt%3Dmedia%26token%3D4bc4d6fe-835f-461c-aa08-d129e72b4b9d&width=768&dpr=3&quality=100&sign=d1411c1c&sv=2) * * * #### [hashtag](https://current-finance.gitbook.io/current/incentives/referral#eligibility-to-create-a-referral-code) **Eligibility to Create a Referral Code** To create your own referral code, you must have **at least $10,000 in cumulative trading volume**. **What counts toward the $10,000 requirement:** * **Current Market supply volume** * **Current Margin trading volume** circle-info **How volume is calculated:** * Repeated deposits and withdrawals are cumulative _(e.g. $2,000 deposited or withdrawn 5 times = $10,000 total volume)_ * Margin trading volume is calculated based on **position size** _(e.g. $500 position with 4× leverage = $2,000 trading volume)_ * * * #### [hashtag](https://current-finance.gitbook.io/current/incentives/referral#summary) **Summary** * Referrers earn **10% of referees’ flash loan fees** * Referees receive a **4% flash loan fee rebate** * $10,000 cumulative volume unlocks your referral code [PreviousCurrent Pointschevron-left](https://current-finance.gitbook.io/current/incentives/current-points) [NextADL (Automated Deleverage)chevron-right](https://current-finance.gitbook.io/current/protocol-mechanism/adl-automated-deleverage) Last updated 10 days ago sun-brightdesktopmoon sun-brightdesktopmoon --- # Opening a Position | Current Finance Doc In multiply, a user inputs their deposit amount and target leverage amount. Using these values, the protocol can identify how much SUI needs to be borrowed in the flash loan. Then: 1. SUI is borrowed 2. SUI is swapped to target asset (eg.HASUI) 3. Target asset is supplied in Current-Lend 4. SUI is borrowed against target asset 5. Borrowed SUI is used to repay the initial flash loan 6. Position is open at target leverage ### [hashtag](https://current-finance.gitbook.io/current/product/multiply/opening-a-position#how-to-open-a-multiply-position) How to open a Multiply Position 1. Select a vault in Multiply ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252F2auoO8z3buCSsl7BX0Eb%252Fimage.png%3Falt%3Dmedia%26token%3D1b6d3e93-1106-49b3-a2e6-53b51afdd34d&width=768&dpr=3&quality=100&sign=4813af4f&sv=2) 1. Select your deposit token, token amount and leverage ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252Frb7iexXy7teG26Gz5HAW%252Fimage.png%3Falt%3Dmedia%26token%3Da9e0d26f-b558-4707-8a80-a8d474fa017b&width=768&dpr=3&quality=100&sign=1594cd2d&sv=2) `Net APY is the key metric：` * `If Net APY is higher than the underlying asset’s APY, the position earns yield.` * `If Net APY is lower than the underlying asset’s APY, interest is being paid to keep the position open.` [PreviousHow It Work?chevron-left](https://current-finance.gitbook.io/current/product/multiply/how-it-work) [NextManaging a Positionchevron-right](https://current-finance.gitbook.io/current/product/multiply/managing-a-position) Last updated 14 days ago sun-brightdesktopmoon sun-brightdesktopmoon --- # Managing a Position | Current Finance Doc ### [hashtag](https://current-finance.gitbook.io/current/product/multiply/managing-a-position#id-1.-monitor-your-position-in-the-overview-and-my-position-tabs) 1\. Monitor your position in the Overview and My Position tabs ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FkOY21yWrk4msTXNneOEa%252Fimage.png%3Falt%3Dmedia%26token%3D301259b2-b271-4b87-affa-80a17faf743a&width=768&dpr=3&quality=100&sign=b4234092&sv=2) Note： `Net APY is the key metric：` * `If Net APY is higher than the underlying asset’s APY, the position earns yield.` * `If Net APY is lower than the underlying asset’s APY, interest is being paid to keep the position open.` ### [hashtag](https://current-finance.gitbook.io/current/product/multiply/managing-a-position#id-2.-use-the-manage-module-to-manage-your-position) 2\. Use the Manage module to manage your position ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252Fl368zE6kKWInYdqS1Dmh%252Fimage.png%3Falt%3Dmedia%26token%3Db475b8c2-7dfc-426e-afba-3bf93b176220&width=768&dpr=3&quality=100&sign=6f7b60af&sv=2) #### [hashtag](https://current-finance.gitbook.io/current/product/multiply/managing-a-position#increase-or-decrease-size) Increase or Decrease Size You can top up or reduce your position whenever it’s open. #### [hashtag](https://current-finance.gitbook.io/current/product/multiply/managing-a-position#adjust-leverage) Adjust Leverage You can adjust your Multiply leverage at any time. This will adjust the amount of collateral and debt in your position, and will change your LTV. [PreviousOpening a Positionchevron-left](https://current-finance.gitbook.io/current/product/multiply/opening-a-position) [NextRiskschevron-right](https://current-finance.gitbook.io/current/product/multiply/risks) Last updated 14 days ago * [1\. Monitor your position in the Overview and My Position tabs](https://current-finance.gitbook.io/current/product/multiply/managing-a-position#id-1.-monitor-your-position-in-the-overview-and-my-position-tabs) * [2\. Use the Manage module to manage your position](https://current-finance.gitbook.io/current/product/multiply/managing-a-position#id-2.-use-the-manage-module-to-manage-your-position) sun-brightdesktopmoon Copy // Note:Adjusting position size has no impact on the leverage and risk of your position Copy // Lower leverage = lower LTV Higher leverage = higher LTV sun-brightdesktopmoon --- # Code Security & Formal Verification | Current Finance Doc We partner with multiple most reputable audito firms in the industry to perform full audits, formal verification and continous code reivew #### [hashtag](https://current-finance.gitbook.io/current/security-and-risk/code-security-and-formal-verification#independent-audits) Independent Audits Audit Firms Asymptotics Full audit + Formal Verification Movebit Governance + Penetration Test Sherlock Contest audit Asymptotic Long-term partnership — all ongoing changes Zellic Full Audit [Read audit reports here](https://current-finance.gitbook.io/current/security-and-risk/audit-reports) #### [hashtag](https://current-finance.gitbook.io/current/security-and-risk/code-security-and-formal-verification#formal-verification) **Formal Verification** Multi-layered review covering smart contract logic, economic design, and integration points.We also apply formal verification, which mathematically proves that critical properties hold unconditionally. This goes beyond what conventional auditing or testing can guarantee. With [Asymptoticarrow-up-right](https://asymptotic.tech/) . #### [hashtag](https://current-finance.gitbook.io/current/security-and-risk/code-security-and-formal-verification#continuous-code-review) Continuous Code Review Security doesn’t stop after the initial audit. **Asymptotic** provides ongoing code review through continuous retainer partnerships. This means that no code change or pull request is merged without thorough scrutiny from these industry experts, ensuring security remains intact throughout the development lifecycle. [PreviousSecurity Overviewchevron-left](https://current-finance.gitbook.io/current/security-and-risk/security-overview) [NextRisk Management Frameworkchevron-right](https://current-finance.gitbook.io/current/security-and-risk/risk-management-framework) Last updated 1 day ago sun-brightdesktopmoon sun-brightdesktopmoon --- # FLP-1: Founding Liquidity Partner | Current Finance Doc ![Page cover](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252Fg5h4ZjliyLENX60ZbPjm%252FFrame%2520143727850.png%3Falt%3Dmedia%26token%3D08eb4a43-823c-4a71-a00d-bc6a33c1cbf3&width=1248&dpr=3&quality=100&sign=70d5f538&sv=2) ### [hashtag](https://current-finance.gitbook.io/current/incentives/flp-1-founding-liquidity-partner#about-flp-1) About FLP-1 FLP-1 is Current’s inaugural Founding Liquidity Partner allocation — a limited opportunity to **participate in protocol revenue as TVL scales.** Participants deposit USDC or SUI in lot size of 5000, receives exclusive bonus yield, limited time, limited quota, first come first serve. circle-info Participants receive structured, revenue-linked yield that extends beyond a standard deposit. Type Yield Composition USDC Depositor SUI Depositor Regular Yield Lending Yield 3%–6% 3%–6% Protocol Incentive ~3% USDC ~3% SUI FLP-1 Exclusive Revenue Share1 ~0.45% - 6% (no upper limit) ~0.45% - 6% (no upper limit) Commitment Bonus2 0.45% - 2.5% 0.45% - 2.5% Points Booster 1.5x on all Points 1.5x on all Points Total APY **FLP-1 Depositor (12 month APY)** **~6.9% - 17.5% (no upper limit)** **~6.9% - 17.5% (no upper limit)** Regular Depositor ~6% - 9% ~6% - 9% ### [hashtag](https://current-finance.gitbook.io/current/incentives/flp-1-founding-liquidity-partner#flp-1-exclusive-yield) FLP-1 Exclusive Yield #### [hashtag](https://current-finance.gitbook.io/current/incentives/flp-1-founding-liquidity-partner#id-1.-revenue-share) 1\. Revenue Share Revenue Share represents **3% (USDC) / 2% (SUI)** of protocol revenue, distributed monthly. APY range reflects projected TVL $15M to $200M. #### [hashtag](https://current-finance.gitbook.io/current/incentives/flp-1-founding-liquidity-partner#id-2.-commitment-bonus) 2\. Commitment Bonus Commitment Bonus scales with depositor’s lot size **0.45% APY** if depositor purchases 5 or more lots (25,000 USDC or SUI) **1.2% APY** if depositor purchases 10 or more lots (50,000 USDC or SUI) **2.5% APY** if depositor purchases 20 or more lots (100,000 USDC or SUI) circle-check To remain eligible for Commitment Bonus, depositor must maintain an average monthly deposit balance equal to or greater than their initial commitment #### [hashtag](https://current-finance.gitbook.io/current/incentives/flp-1-founding-liquidity-partner#id-3.-benefit-period) 3\. Benefit Period All FLP-1 exclusive benefits apply for **12 months** from **Activation Milestone**. Points Booster excluded from Total APY. ### [hashtag](https://current-finance.gitbook.io/current/incentives/flp-1-founding-liquidity-partner#offering-structure-and-capacity) Offering Structure & Capacity #### [hashtag](https://current-finance.gitbook.io/current/incentives/flp-1-founding-liquidity-partner#fixed-capacity-allocation) Fixed-Capacity Allocation USDC Capacity SUI Capacity **6,000,000 USDC** **4,000,000 SUI** Lot size 5,000 USDC Lot size 5,000 SUI 1200 lots 800 lots unlock _**Opening on 10th March 2026 at 6am CET time. First come, first served.**_ door-closed _**Close condition: The FLP-1 allocation closes as soon as any of the following is reached:**_
 A) Fully subscribed B) 7 days after opening C) Protocol TVL hits $12,000,000 ### [hashtag](https://current-finance.gitbook.io/current/incentives/flp-1-founding-liquidity-partner#activation-milestone-payment) Activation Milestone, Payment #### [hashtag](https://current-finance.gitbook.io/current/incentives/flp-1-founding-liquidity-partner#no-lockup) lock-open NO Lockup Withdrawals are permitted at any time (subject to pool liquidity). If the remaining deposit amount after withdrawal is below at least 1 lot size (5000 USDC/ 5000 SUI), participant will drop out of FLP-1 and no longer enjoy any FLP-1 Exclusive Yield. Remaining amout still earns regular yield. #### [hashtag](https://current-finance.gitbook.io/current/incentives/flp-1-founding-liquidity-partner#activation-milestone) flag Activation Milestone FLP-1 exclusive benefits unlock once **Total Deposit maintains $15M for 5 consecutive days**. #### [hashtag](https://current-finance.gitbook.io/current/incentives/flp-1-founding-liquidity-partner#payment) money-bills Payment FLP-1 exclusive yield becomes claimable monthly, starting **1 month after activation milestone.** #### [hashtag](https://current-finance.gitbook.io/current/incentives/flp-1-founding-liquidity-partner#safety-net) shield-cross Safety Net If the activation milestone is not reached within 3 months of the FLP-1 launch date, the program terminates and participants receive a compensatory 2% APY bonus in addition to base yields [PreviousAudit Reportschevron-left](https://current-finance.gitbook.io/current/security-and-risk/audit-reports) [NextCurrent Pointschevron-right](https://current-finance.gitbook.io/current/incentives/current-points) Last updated 9 days ago * [About FLP-1](https://current-finance.gitbook.io/current/incentives/flp-1-founding-liquidity-partner#about-flp-1) * [FLP-1 Exclusive Yield](https://current-finance.gitbook.io/current/incentives/flp-1-founding-liquidity-partner#flp-1-exclusive-yield) * [Offering Structure & Capacity](https://current-finance.gitbook.io/current/incentives/flp-1-founding-liquidity-partner#offering-structure-and-capacity) * [Activation Milestone, Payment](https://current-finance.gitbook.io/current/incentives/flp-1-founding-liquidity-partner#activation-milestone-payment) sun-brightdesktopmoon sun-brightdesktopmoon --- # Current Points | Current Finance Doc Current Points reward users for contributing to protocol activity across **Market (Supply/Borrow)**, **Margin**, and **Multiply**. Points are designed to track **real usage** and **sustained participation**—not short-term gaming. circle-info **Note:** Current Points are a loyalty and engagement metric. They are not a token and do not represent ownership, equity, or any claim on protocol assets. ### [hashtag](https://current-finance.gitbook.io/current/incentives/current-points#how-points-work) How Points Work Current Points are earned through three layers: 1. **Base Points (Market Usage)** Earn points by supplying and borrowing across supported markets. 2. **Bonus Points (Leverage Products)** Earn additional points when using **Margin** or **Multiply** on designated markets/pairs. 3. **Loyalty Bonus (Consistency)** Earn extra points for maintaining **Supply** or **Borrow** positions above a defined threshold over time. ### [hashtag](https://current-finance.gitbook.io/current/incentives/current-points#base-points-supply-and-borrow) Base Points: Supply & Borrow Users earn base points by performing **Supply** and **Borrow** operations across all markets. * Points vary by asset based on **assigned weightings**. * Weightings reflect protocol objectives and risk considerations (e.g., deeper liquidity targets, strategic assets, market quality). **What counts:** * Supplying assets to Current Market * Borrowing assets from Current Market ### [hashtag](https://current-finance.gitbook.io/current/incentives/current-points#bonus-points-margin-and-multiply) Bonus Points: Margin & Multiply Users can earn **additional bonus points** when performing **Margin** or **Multiply** operations on certain designated trading pairs or markets. * Bonus eligibility depends on whether the pair/market is currently marked as **bonus-enabled**. * Bonus points are meant to reward activity that drives: * healthier utilization in the lending market * organic trading volume * deeper on-chain liquidity circle-info _Designated pairs/markets may change over time based on liquidity conditions and risk parameters._ ### [hashtag](https://current-finance.gitbook.io/current/incentives/current-points#loyalty-bonus-stay-active-earn-more) Loyalty Bonus: Stay Active, Earn More Users who maintain **Supply** or **Borrow** positions continuously **above a specified threshold** may receive a loyalty bonus. This encourages long-term liquidity and stable protocol health. **Key idea:** The loyalty bonus is tied to **persistence**, not just size. ### [hashtag](https://current-finance.gitbook.io/current/incentives/current-points#flp-1-multiplier-bonus) FLP-1 Multiplier Bonus For **FLP-1 users**, all points earned receive a **1.5× multiplier**. This applies across: * Base Points * Bonus Points * Loyalty Bonus ### [hashtag](https://current-finance.gitbook.io/current/incentives/current-points#snapshot-and-timing) Snapshot & Timing * Points are **snapshotted once per day**. * The snapshot time is **randomized**. _This is intentional—it reduces the incentive to “deposit right before snapshot / withdraw right after snapshot” behavior._ ### [hashtag](https://current-finance.gitbook.io/current/incentives/current-points#notes-and-important-details) Notes & Important Details * **Points are not guaranteed to scale linearly.** For example, doubling an input (e.g., balances) does not necessarily mean 2× points if weightings or bonus conditions differ. * **Markets and assets may be weighted differently.** The same amount in two different assets may not earn the same points. * **Program parameters may evolve.** Weightings, thresholds, and bonus pairs may be updated as the protocol grows. [PreviousFLP-1: Founding Liquidity Partnerchevron-left](https://current-finance.gitbook.io/current/incentives/flp-1-founding-liquidity-partner) [NextReferralchevron-right](https://current-finance.gitbook.io/current/incentives/referral) Last updated 10 days ago * [How Points Work](https://current-finance.gitbook.io/current/incentives/current-points#how-points-work) * [Base Points: Supply & Borrow](https://current-finance.gitbook.io/current/incentives/current-points#base-points-supply-and-borrow) * [Bonus Points: Margin & Multiply](https://current-finance.gitbook.io/current/incentives/current-points#bonus-points-margin-and-multiply) * [Loyalty Bonus: Stay Active, Earn More](https://current-finance.gitbook.io/current/incentives/current-points#loyalty-bonus-stay-active-earn-more) * [FLP-1 Multiplier Bonus](https://current-finance.gitbook.io/current/incentives/current-points#flp-1-multiplier-bonus) * [Snapshot & Timing](https://current-finance.gitbook.io/current/incentives/current-points#snapshot-and-timing) * [Notes & Important Details](https://current-finance.gitbook.io/current/incentives/current-points#notes-and-important-details) sun-brightdesktopmoon sun-brightdesktopmoon --- # ADL (Automated Deleverage) | Current Finance Doc Automated Deleverage (ADL) is one of the key mechanisms to prevent large-scale bad debt. Its core idea is to reduce leverage proactively so the protocol does not enter a “death spiral” from mass liquidations. ADL includes deleveraging on the borrowing side and on the collteral side. ### [hashtag](https://current-finance.gitbook.io/current/protocol-mechanism/adl-automated-deleverage#deleverage-in-practice) Deleverage in Practice #### [hashtag](https://current-finance.gitbook.io/current/protocol-mechanism/adl-automated-deleverage#triggering-auto-deleverage) Triggering Auto-Deleverage When the protocol deems that the borrow/deposit cap for `TokenA` needs to be adjusted, the protocol administrators will initiate ADL via a multi-sig. If the multi-sig vote passes, all affected users will be notified of the deleverage event and given a 72-hour margin-call window to take action. If enough borrowers proactively close or reduce positions so that current levels fall below the new cap, the process ends there. Once ADL is triggered, the supply and borrow caps for TokenA will be reset. The difference between the current amounts and the new caps is the deleverage amount. Users subject to deleveraging will see a proportional reduction in the target asset and the corresponding tokens in their positions. Deleveraging typically results in a healthier loan-to-value (LTV). Users who only supply assets to Current Lending will not be affected by ADL. Once auto-deleveraging begins, a position will be eligible for deleverage if: (1) It contains the target asset (2) It has a `current_LTV` that exceeds the `liquidaition_LTV` #### [hashtag](https://current-finance.gitbook.io/current/protocol-mechanism/adl-automated-deleverage#collateral-and-debt-delverage) Collateral & Debt Delverage Collateral-side deleveraging occurs when there is excessive lending against **Token\_A** as collateral and liquidations cannot be executed successfully. In this situation, liquidating loans collateralized by **Token\_A** would result in losses. All users who use **Token\_A** as collateral will be notified of the deleverage event. If a user is deleveraged, some or all of the user’s **Token\_A** collateral will be sold on the market and the proceeds will be used to repay the debt on a pro-rata basis. Debt-side deleveraging is the opposite. If the system carries too much **Token\_B** debt and the price of **Token\_B** rises, liquidators may be unable to liquidate without imposing losses on the protocol. When **Token\_B** deleveraging is initiated, liquidators sell a portion of collateral and use the proceeds to repay debt denominated in **Token\_B**. When ADL is executed, all affected users are charged a dynamic ADL penalty. NOTE:The purpose of the dynamic ADL penalty is to encourage affected users to take action within 72 hours to avoid triggering ADL. #### [hashtag](https://current-finance.gitbook.io/current/protocol-mechanism/adl-automated-deleverage#auto-liquidation-penalty) Auto liquidation Penalty `Auto_liquidation_penalty = minimum_liquidation_penalty + (current_ltv * days_since_deleverage_initiated*K)` if: * `minimum_liquidation_penalty=50bps` * `current_ltv=75%` * `days_since_deleverage_initiated=2days` * `K=The penalty accrued per day at 100% LTV=1%` `Then:` `Auto_liquidation_penalty=0.005+(0.75*2*1%)=1.505%` #### [hashtag](https://current-finance.gitbook.io/current/protocol-mechanism/adl-automated-deleverage#dynamic-decrease-in-liquidation-ltv) Dynamic Decrease in Liquidation LTV After ADL is initiated, it continues until the protocol’s objectives are achieved. As a result, the liquidation line is reduced dynamically during the process. `deleverage_liquidation_LTV = deleverage_liquidation_LTV-(hourly_drop_bps*elapsed/3600)` ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FIdnlnTK5uh3D2CFaCguk%252Fimage.png%3Falt%3Dmedia%26token%3D1dbac7a4-b8b0-4b25-80b1-d49f997a0c3b&width=768&dpr=3&quality=100&sign=99dcbfcc&sv=2) #### [hashtag](https://current-finance.gitbook.io/current/protocol-mechanism/adl-automated-deleverage#triggering-auto-deleverage-1) [PreviousReferralchevron-left](https://current-finance.gitbook.io/current/incentives/referral) [NextDaily Capschevron-right](https://current-finance.gitbook.io/current/protocol-mechanism/daily-caps) Last updated 14 days ago sun-brightdesktopmoon sun-brightdesktopmoon --- # Season 1 | Current Finance Doc ![Page cover](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252Fu7IgTa2qH7sVulo3yJ8Z%252FFrame%2520143727565.png%3Falt%3Dmedia%26token%3D20d1aac9-8cb2-4f59-97c1-0d431265264f&width=1248&dpr=3&quality=100&sign=8ff3cfa1&sv=2) ![Cover](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252F1xyAorVrYmdH8PVT1sI2%252Fimage.png%3Falt%3Dmedia%26token%3D74608f45-9b35-4378-9bcd-50570bd997c7&width=752&dpr=3&quality=100&sign=3f1a0e31&sv=2) ### [hashtag](https://current-finance.gitbook.io/current/playbook/season-1#farm-multiply-points--stsui-yield) Farm Multiply points + stSUI yield. by [@King\_Breezyyarrow-up-right](https://x.com/King_Breezyy) [Farm Multiply points + stSUI yield](https://current-finance.gitbook.io/current/playbook/season-1/farm-multiply-points-+-stsui-yield) ![Cover](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FcxhIqJouUMhLAIA5DsSS%252Fimage.png%3Falt%3Dmedia%26token%3Dbb3002ae-c946-42ce-be50-24fea316b641&width=752&dpr=3&quality=100&sign=d7565695&sv=2) #### [hashtag](https://current-finance.gitbook.io/current/playbook/season-1#the-sleep-well-system-playbook) The Sleep-Well System Playbook by [@BenedictOc14977arrow-up-right](https://x.com/BenedictOc14977) [The Sleep-Well System Playbook](https://current-finance.gitbook.io/current/playbook/season-1/the-sleep-well-system-playbook) [Farm Multiply points + stSUI yieldchevron-right](https://current-finance.gitbook.io/current/playbook/season-1/farm-multiply-points-+-stsui-yield) [PreviousFAQchevron-left](https://current-finance.gitbook.io/current/faq) [NextFarm Multiply points + stSUI yieldchevron-right](https://current-finance.gitbook.io/current/playbook/season-1/farm-multiply-points-+-stsui-yield) Last updated 1 month ago sun-brightdesktopmoon sun-brightdesktopmoon --- # Farm Multiply points + stSUI yield | Current Finance Doc [hashtag](https://current-finance.gitbook.io/current/playbook/season-1/farm-multiply-points-+-stsui-yield#farm-multiply-points--stsui-yield-while-protecting-principal-from-sui-downside) Farm Multiply points + stSUI yield, while protecting principal from SUI downside. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252F1xyAorVrYmdH8PVT1sI2%252Fimage.png%3Falt%3Dmedia%26token%3D74608f45-9b35-4378-9bcd-50570bd997c7&width=40&dpr=3&quality=100&sign=3f1a0e31&sv=2)By [@King\_Breezyyarrow-up-right](https://x.com/King_Breezyy) Hello Frens, here’s another strategy on how to farm points on [@Currentarrow-up-right](https://x.com/CurrentSUI) while also enjoying one of the highest APRs from vaulting. #### [hashtag](https://current-finance.gitbook.io/current/playbook/season-1/farm-multiply-points-+-stsui-yield#assumptions) Assumptions In this Strategy it is assumed that: * stSUI ≈ SUI (highly correlated) * Liquidation risk from divergence is low * Net APR on leveraged stSUI remains positive * **Hedge only protects principal, not full leverage exposure** #### [hashtag](https://current-finance.gitbook.io/current/playbook/season-1/farm-multiply-points-+-stsui-yield#practical-setup-usd1-400-plan) Practical Setup — $1,400 Plan 1. Use $1,400 to open a 7.5× stSUI Multiply position ~ $10,500 effective exposure (qualifies for a single multiply point daily) 2. Then hedge the $1,400 capital by taking a small SUI short sized to your principal ($700 at a 2x leverage or $467 at a 3x leverage is advised) circle-check [hashtag](https://current-finance.gitbook.io/current/playbook/season-1/farm-multiply-points-+-stsui-yield#the-idea-you-farm-yield--points-on-the-leveraged-stsui...while-the-hedge-helps-reduce-downside-risk) The idea: You farm yield + points on the leveraged stSUI…while the hedge helps reduce downside risk on your real capital. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- #### [hashtag](https://current-finance.gitbook.io/current/playbook/season-1/farm-multiply-points-+-stsui-yield#why-its-powerful) Why it’s powerful * Yield scales with the $10k+ exposure * Risk is framed around $1,400 capital * Hedge reduces directional bias instead of nuking returns _**In my math, an ~11.76% net APR as at today for a 7.5x leverage on the multiply position → translates to ~88.2% APR on capital (because of leverage efficiency).**_ > **Not price speculation — capital-efficient vaulting.** This type of APR on SUI vaulting is only possible on [@Current arrow-up-right](https://x.com/CurrentSUI) and it’s the only protocol on[@SuiNetworkarrow-up-right](https://x.com/SuiNetwork) that allows hedging against directional bias without going cross-protocol. #### [hashtag](https://current-finance.gitbook.io/current/playbook/season-1/farm-multiply-points-+-stsui-yield#risks-to-keep-in-mind) Risks to keep in mind * Price of SUI going down and taking position below $10,000(stops earning point) * stSUI/SUI correlation breaking * big SUI volatility * funding + fee changes * hedge drift over time > **Not a passive strategy — works best if you monitor it.** #### [hashtag](https://current-finance.gitbook.io/current/playbook/season-1/farm-multiply-points-+-stsui-yield#who-its-for) Who it’s for * ppl who understand leverage + staking derivatives * yield strategists / points farmers * users optimizing capital efficiency, not direction * users who are ready to monitor funding and position daily. circle-info **Side Note: As we already have a $1400 cumulative position on margin, we can take up another $600 position (example a $200 buy and sell position of WAL at 3x leverage) to get the cumulative margin position to $2000 and start earning one margin point daily. This strategy fully utilizes all features and power of**[**@Current.**arrow-up-right](https://x.com/CurrentSUI) [PreviousSeason 1chevron-left](https://current-finance.gitbook.io/current/playbook/season-1) [NextThe Sleep-Well System Playbookchevron-right](https://current-finance.gitbook.io/current/playbook/season-1/the-sleep-well-system-playbook) Last updated 14 days ago sun-brightdesktopmoon sun-brightdesktopmoon --- # The Sleep-Well System Playbook | Current Finance Doc by [@BenedictOc14977arrow-up-right](https://x.com/BenedictOc14977) GM Sui Chads So the last time I wrote about how you could position yourself for what Current is cooking, and I promised to share part two, where I explain what isolated markets are Today is that day. ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252F5lBiJ8U2h3KmOd1QZXF1%252Fimage.png%3Falt%3Dmedia%26token%3D3e2b6627-dc94-4769-a3f0-ce6d18715352&width=768&dpr=3&quality=100&sign=6ef7e3a4&sv=2) Let's dive into trading psychology today and how you can leverage Current for your trades ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FqspMufOJtwWw7N8HJPFE%252Fimage.png%3Falt%3Dmedia%26token%3D6acda291-98f0-4f74-9c23-861e39b3c24a&width=768&dpr=3&quality=100&sign=b927c0c8&sv=2) Here's the reason why many traders lose money, they can't handle emotions. But Current has something that can help you ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FJRJ8cxhLhQkKuRQgD3hW%252Fimage.png%3Falt%3Dmedia%26token%3D618ce9a1-8cb0-492d-a29e-4d7f25168930&width=768&dpr=3&quality=100&sign=2a395a4e&sv=2) These are some of the reasons we lose money in trading and don't get successful trades ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FRajxg6z4pQL8cNHVykmz%252Fimage.png%3Falt%3Dmedia%26token%3D620829e0-52cc-4de2-9c10-bbed330a7eb6&width=768&dpr=3&quality=100&sign=d2d21225&sv=2) Now for the Isolated market: These are lending pools or trading environments where the risk of different digital assets is segregated. This design prevents problems with one volatile or compromised asset from negatively impacting the entire protocol or a user's entire portfolio. circle-info **Why this matters:** Something happened on a POPCAT trade that wasn't so good. Trades across 19 accounts crashed, which liquidated over $25M ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FntOFcspWJy9X67WI55Ah%252Fimage.png%3Falt%3Dmedia%26token%3Dc0246a63-b857-410f-a27f-3696a3f7e906&width=768&dpr=3&quality=100&sign=4a20a6b0&sv=2) ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FxRC7LGBDdqIkTp9dksnQ%252Fimage.png%3Falt%3Dmedia%26token%3Da5b64a50-0ba9-4745-abb6-88ec233d489a&width=768&dpr=3&quality=100&sign=ea68ca68&sv=2) Where you trade matters, and that's why you need Current, so that you can avoid certain risks while trades. Full Decentralized trading, full power. ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252F0rtHXPbJfG5k3ERxsH4G%252Fimage.png%3Falt%3Dmedia%26token%3D56a1edd9-34be-4216-95d1-90b297b2484a&width=768&dpr=3&quality=100&sign=4872d579&sv=2) Here's the strategy Just head over to http://beta.pebble-finance.com/market and follow the steps Step 1 : Get your emotions in check ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FcVn5AicCqVd8WhWmrBgb%252Fimage.png%3Falt%3Dmedia%26token%3Dba1991ea-ce4d-48d8-8a16-889e6862dd76&width=768&dpr=3&quality=100&sign=e0f89c2e&sv=2) Step 2: Pick a market ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FGI3EcmUKUooxqHf6UfKF%252Fimage.png%3Falt%3Dmedia%26token%3De91d9874-205c-44d4-b4af-b495a1585611&width=768&dpr=3&quality=100&sign=d8b8a7d5&sv=2) Step 3: select your margin and leverage ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252FWwWKcMNBjCRWPQG0Kilq%252Fimage.png%3Falt%3Dmedia%26token%3D8bd6c7b2-c049-4d09-959b-159ac6d8f3bc&width=768&dpr=3&quality=100&sign=fad78edd&sv=2) The last step : Relax Always minimize risk, the market can go wild anytime . And never stop improving To learn more about margin trading on Current visit https://pebble-finance.gitbook.io/pebble-finance-docs/product/margin ![](https://current-finance.gitbook.io/current/~gitbook/image?url=https%3A%2F%2F3100585553-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252FcyFYP8iHb4FhO8wkEH9r%252Fuploads%252F2QBM9UaSJsAhEbEW4kRV%252Fimage.png%3Falt%3Dmedia%26token%3D5df781b9-9b88-4dda-85f2-63596130c86b&width=768&dpr=3&quality=100&sign=beedb2c6&sv=2) [PreviousFarm Multiply points + stSUI yieldchevron-left](https://current-finance.gitbook.io/current/playbook/season-1/farm-multiply-points-+-stsui-yield) Last updated 14 days ago sun-brightdesktopmoon sun-brightdesktopmoon ---