FAQs Liquidity
What Happens When My Liquidity Goes Out Of Range?
If the market price moves outside your chosen range:
Your position becomes out-of-range.
You no longer earn fees.
Your position effectively becomes 100% of one token.
Example: If you provided MON/USDC liquidity for $1–$2 and MON trades up to $2.50, you now hold only USDC and earn no fees until price returns into your range.
What Can I Do If My Position Is Out Of Range?
MonitorLeave it and wait for price to re-enter your range.AdjustRemove liquidity and add a new position with a different range that includes the current price.ExitRemove liquidity and hold the token you now have.
What Is Impermanent Loss?
Impermanent loss is the potential loss vs simply holding tokens when their prices change after adding AMM liquidity. See the Impermanent Loss section for a detailed explanation.
Order book-based liquidity (limit orders) is not subject to IL; only AMM-based LP positions are.
Why Can I Not Create A Pool With A Certain Fee Tier?
If pool creation fails:
A pool for that pair and fee tier likely already exists.
Nad DEX allows only one pool per unique (token pair + fee tier) combination.
You can:
Add liquidity to the existing pool, or
Create a pool at a different fee tier if it doesn’t exist yet.