Glossary
The dictionary describing all the definitions used in the docs.
The amount capital Liquidity Providers will lose by providing and withdrawing liquidity. It is equal to realised and unrealised impermanent loss.
Impermanent loss cannot be eliminated, because it is an essential feature of Decentralised Exchanges (DEX) that generates Fee Income for LPs.
For simplicity, Capital Loss will be used inter-changeably with impermanent loss throughout the docs.
A Liquidity Position with the maximum possible price range.
Compared to other Liquidity Positions, A Full-Range Position earn the lowest Fees Income, but also have the lowest risk of Capital Loss.
It also guarantees tokens can always be traded.
Liquidity is the size of the trade that can be placed to move the Market Price.
The Liquidity is always zero for Out-of-Range Liquidity.
The price ranges of the Range Order chosen by a Liquidity Provider or Liquidity Manager when providing liquidity.
Last modified 2mo ago