Liquidity positions
A liquidity position lets other people trade against your assets at prices you choose. In return, it can earn a share of swap fees while it is active. Your key decision is the range: the interval of prices where your liquidity participates.
See what a range does
Suppose TOKEN trades at 2 quote units and you provide liquidity from 1 to 3 quote units per TOKEN. This is an illustration, not a return forecast.
- Inside the range: your position supports trades and can earn fees. As TOKEN's price rises, trades leave you with less TOKEN and more quote asset. As it falls, you hold more TOKEN and less quote asset.
- Below the range: the position is entirely TOKEN and earns no swap fees.
- Above the range: the position is entirely the quote asset and earns no swap fees.
- If price returns: the position becomes active again without changing its boundaries.
Being out of range does not mean the position vanished. It means your assets no longer participate at the current price. Fees already earned remain collectable.
Choose breadth before committing assets
A narrower range concentrates the same capital over fewer prices. It can earn a larger share of fees near those prices, but becomes inactive with less price movement.
A wider range covers more movement and needs less frequent range reconsideration, but spreads capital more thinly. Full-range liquidity covers nearly the entire usable price domain. Neither choice guarantees fees or a better result than holding the tokens.
Check the amounts required at the current price. An in-range contribution uses both assets; an out-of-range contribution is one-sided. Boundaries must fit the pool's allowed tick spacing. Use human-readable prices to make the decision rather than treating raw ticks as token prices.
The position's asset mix may be worth less than holding your original assets, often called impermanent loss. Fees may not offset it. Choose a range whose possible single-asset outcome you are willing to hold, not just the one showing attractive fee estimates.
Manage the position you own
Managed Abyss positions are represented by NFTs. The wallet controlling the NFT controls the position; transferring it transfers that control.
| Your goal | Action and result |
|---|---|
| Commit more assets to the same range | Add liquidity to the existing position. Its boundaries stay the same. |
| Take some assets out of trading | Reduce liquidity. The released principal becomes owed to the position. |
| Receive available proceeds | Collect owed assets, which can include fees and released principal. |
| Use different boundaries | Remove liquidity and create a position with the new range. |
| Fully close the position | Remove all liquidity and collect both owed balances before closing the empty NFT. |
Before removal, check the minimum asset amounts you will accept and the assets you expect to receive. After confirmation, check both remaining liquidity and collected balances: reducing liquidity and collecting proceeds are distinct actions.
Lock only when the commitment is intentional
The optional locker can hold a position NFT until a chosen time or permanently. While locked, the NFT cannot be transferred and liquidity cannot be removed. Fees can still be collected to the lock's designated recipient.
A permanent lock cannot be undone. It commits that position, not every provider in the pool, and it cannot keep your range active if prices move outside it. Other unlocked providers can still remove their liquidity.
Before choosing a lock, decide whether its commitment matters more than your ability to withdraw or change the range. For other asset and contract risks, see Security and risks.