Do I get "liquidated" if the price goes outside of my range?

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 1,000 to 5,000 for an ETH/USDC pool.

  • If ETH falls to 900, then your balance will be 100% in ETH.
  • If ETH goes up to 6,000, then your balance will be 100% in USDC.

 

Updated

Was this article helpful?

/