Inactive positions and Ratio

What happens when my position goes out of the range? Do I get liquidated?

No, you do not get liquidated if your price goes outside of your range.

When your position leaves your price range, your position will be "inactive". This means your position will not earn fees until the price comes back in range.

However, when the price goes outside your range, the ratio of your position will change.

Here is an example of how a position changes:

A liquidity provider has a price range of 0.25 to 5 for an LIF3/L3USD pool.

  • If LIF3 falls to 0.20, then your balance will be 100% in LIF3.

  • If LIF3 goes up to 5, then your balance will be 100% in L3USD.

Last updated