The Lord is not directly attached to the creation, maintenance and destruction of the material world, for He is eternally busy in the enjoyment of transcendental bliss with paraphernalia composed of His internal potencies. Yet as the initiator of the material energy as well as the marginal potency (the living beings), He expands Himself as the puruṣa-avatāras, who are invested with potencies similar to His. The puruṣa-avatāras are also in the category of bhagavat-tattva because each and every one of them is identical with the original form of the Personality of Godhead. The living entities are His infinitesimal particles and are qualitatively one with Him. They are sent into this material world for material enjoyment, to fulfill their desires to be independent individuals, but still they are subject to the supreme will of the Lord. The Lord deputes Himself in the state of Supersoul to supervise the arrangements for such material enjoyment. The example of a temporary fair is quite appropriate in this connection. If the citizens of a state assemble in a fair to enjoy for a short period, the government deputes a special officer to supervise it. Such an officer is invested with all governmental power, and therefore he is identical with the government. When the fair is over, there is no need for such an officer, and he returns home. The Paramātmā is compared to such an officer.
(Sri Caitanya Caritamrta-------1:2:10------purport).

The cosmic manifestation is generated by the interaction of the three modes of material nature. The transcendental world has no such material modes, although it is nevertheless full of spiritual variegatedness. In that spiritual world there are also innumerable living entities, who are eternally liberated souls engaged in transcendental loving service to Lord Kṛṣṇa. The conditioned souls, who remain within the material cosmic creation, are subjected to the threefold miseries and pangs of material nature. They exist in different species of life because they are eternally averse to transcendental loving devotion to the Supreme Lord. Saṅkarṣaṇa is the original source of all living entities because they are all expansions of Hismarginal potency. Some of them are conditioned by material nature, whereas others are under the protection of the spiritual nature. The material nature is a conditional manifestation of spiritual nature, just as smoke is a conditional stage of fire. Smoke is dependent on fire, but in a blazing fire there is no place for smoke.
(Sri Caitanya Caritamrta-------1:2:36------purport).

These three energies of the Absolute Truth are also described in the Viṣṇu Purāṇa, where it is said that the living being is equal in quality to the internal potency, whereas the external potency is indirectly controlled by the chief cause of all causes. Māyā, the illusory energy, misleads a living being as fog misleads a pedestrian by blocking off the light of the sun. Although the potency of māyā is inferior in quality to the marginal potency, which consists of the living beings, who are part and parcel of the Lord, it nevertheless has the power to control the living beings, just as fog can block the actions of a certain portion of the sun's rays although it cannot cover the sun. The living beings covered by the illusory energy evolve in different species of life, with bodies ranging from that of an insignificant ant to that of Brahmā, the constructor of the cosmos.
(Sri Caitanya Caritamrta-------1:2:96------purport).

The form of the Lord and the expansions of His form as svayaṁ-rūpa and vaibhava-prakāśa are directly the enjoyers of the internal energy, which is the eternal exhibitor of the spiritual world, the most confidential of the manifestations of energy. The external manifestation, the material energy, provides the covering bodies of the conditioned living entities, from Brahmā down to the insignificant ant. This covering energy is manifested under the three modes of material nature and appreciated in various ways by living entities in both the higher and lower forms of life. Each of the three divisions of the internal potency—the sandhinī, samvit and hlādinī energies—influences one of the external potencies by which the conditioned souls are conducted. Such influence manifests the three qualitative modes of material nature, proving definitely that the living entities, the marginal potency, are eternally servitors of the Lord and are therefore controlled by either the internal or the external potency.
(Sri Caitanya Caritamrta-------1:4:62------purport).

In the spiritual sky there is a spiritual creative energy technically called śuddha-sattva, which is a pure spiritual energy that sustains all the Vaikuṇṭha planets with the full opulences of knowledge, wealth, prowess, etc. All these actions of śuddha-sattva display the potencies of Mahā-saṅkarṣaṇa, who is the ultimate reservoir of all individual living entities who are suffering in the material world. When the cosmic creation is annihilated, the living entities, who are indestructible by nature, rest in the body of Mahā-saṅkarṣaṇa. Saṅkarṣaṇa is therefore sometimes called the total jīva. As spiritual sparks, the living entities have the tendency to be inactive in the association of the material energy, just as sparks of a fire have the tendency to be extinguished as soon as they leave the fire. The spiritual nature of the living being can be rekindled, however, in association with the Supreme Being. Because the living being can appear either in matter or in spirit, the jīva is called the marginal potency.
(Sri Caitanya Caritamrta-------1:5:41------purport).

"Your constitutional position is that you are pure living soul," the Lord told Sanātana. "This material body cannot be identified with your real self; nor is your mind your real identity, nor your intelligence, nor false ego. Your identity is that of eternal servitor of the Supreme Lord Kṛṣṇa. Your position is that you're transcendental. The superior energy of Kṛṣṇa is spiritual in constitution, and the inferior external energy is material. Since you are between the material energy and the spiritual energy, your position is marginal. Belonging to the marginal potency of Kṛṣṇa, you are simultaneously one with and different from Kṛṣṇa. Because you are spirit, you are not different from Kṛṣṇa, and because you are only a minute particle of Kṛṣṇa, you are different from Him."
(Teachings of Lord Caitanya).

Human life is meant for plain living and high thinking. Since all conditioned living beings are under the control of the Lord's third energy, this material world is designed so that one is obliged to work. The Supreme Personality of Godhead has three primary energies, or potencies. The first is called antaraṅga-śakti, or the internal potency. The second is called taṭastha-śakti, or the marginal potency. The third is called bahiraṅga-śakti, or the external potency. The living entities constitute the marginal potency, and they are situated between the internal and external Potencies. Being subordinate as eternal servants of the Supreme Personality of Godhead, the jīvātmās, or atomic living entities, must remain under the control of either the internal or external potency. When they are under the control of the internal potency, they display their natural, constitutional activity—namely, constant engagement in the devotional service of the Lord.
(Nectar of Instruction).

Lord Kṛṣṇa expands Himself into countless Viṣṇu forms as His svāṁśa-vaibhava, and He manifests Himself by His vibhinnāṁśa-prakāśa as countless billions of jīvas. All the Viṣṇu expansions are in the category of the Supreme Lord, but the jīvas are not: they are the Lord's marginal potency. This marginal potency, comprising the eternal jīvas, is a manifestation of the Lord's superior, spiritual energy, or parā-śakti. The conclusion of the Bhagavad-gītā is that the jīva is, was, and always will be eternally a manifestation of the Lord's spiritual energy; he will never enter the category of the Supreme Lord or the Viṣṇu forms. This separated energy of Kṛṣṇa's, known as vibhinnāṁśa or jīva, is an infinitesimal part of the Supreme Lord, much like the minute sparks of a large conflagration.
(Renunciation through Wisdom).

The Supreme Lord is the seer of all worlds, both material and transcendental. In other words, the Supreme Lord is the ultimate beneficiary and enjoyer of all worlds, as confirmed in the Bhagavad-gītā (5.29). The spiritual world is the manifestation of His internal potency, and the material world is the manifestation of His external potency. The living entities are also His marginal potency, and by their own choice they can live in either the transcendental or material worlds. The material world is not a fit place for living entities because they are spiritually one with the Lord and in the material world the living entities become conditioned by the laws of the material world. The Lord wants all living entities, who are His parts and parcels, to live with Him in the transcendental world, and for enlightening conditioned souls in the material world, all the Vedas and the revealed scriptures are there—expressly to recall the conditioned souls back home, back to Godhead. Unfortunately, the conditioned living entities, although suffering continually the threefold miseries of conditioned life, are not very serious about going back to Godhead.
(Srimad Bhagavatam------2:2:14-------purport).

The living entity who enjoys the interaction of the above gross and subtle ingredients, as set up by eternal time, is an offshoot of internal potency, with freedom to remain either in the material world or in the spiritual world. In the material world the living entity is enticed by deluding nescience, but in the spiritual world he is in the normal condition of spiritual existence without any delusion. The living entity is known as the marginal potency of the Lord. But in all circumstances, neither the material ingredients nor the spiritual parts and parcels are independent of the Personality of Godhead Vāsudeva, for all things, whether products of the external, internal or marginal potencies of the Lord, are simply displays of the same effulgence of the Lord, just as light, heat and smoke are displays of fire. None of them are separate from the fire—all of them combine together to be called fire; similarly, all phenomenal manifestations, as well as the effulgence of the body of Vāsudeva, are His impersonal features, whereas He eternally exists in His transcendental form called sac-cid-ānanda-vigrahaḥ (Bs. 5.1), distinct from all conceptions of the material ingredients mentioned above.
(Srimad Bhagavatam------2:5:14-------purport).

Since we generally have the experience of the temporary, material world and conditioned souls trying to lord it over the material worlds, Brahmājī explained to Nāradadeva that this temporary world is the work of the external potency of the Lord and that the conditioned souls struggling here for existence are the marginal potency of the Supreme Lord, the Personality of Godhead. There is no cause for all these phenomenal activities but Him, Hari, the Supreme Lord, who is the primeval cause of all causes. This does not mean, however, that the Lord Himself is distributed impersonally. He is aloof from all these interactions of the external and marginal potencies. In the Bhagavad-gītā (9.4) it is confirmed that by His potencies alone He is present everywhere and anywhere. Everything that is manifested rests on His potency only, but He, as the Supreme Personality of Godhead, is always aloof from everything. The potency and the potent are simultaneously one and different from one another.
(Srimad Bhagavatam------2:7:50-------purport).

The Lord is endowed with unlimited potencies (parāsya śaktir vividhaiva śrūyate (Cc. Madhya 13.65, purport)), which are summarized as three, namely external, internal and marginal. The external potency manifests this material world, the internal potency manifests the spiritual world, and the marginal potency manifests the living entities, who are mixtures of internal and external. The living entity, being part and parcel of Parabrahman, is actually internal potency, but because of being in contact with the material energy, he is an emanation of material and spiritual energies. The Supreme Personality of Godhead is above the material energy and is engaged in spiritual pastimes. The material energy is only an external manifestation of His pastimes.
(Srimad Bhagavatam------7:3:34-------purport).