Manual Ranges

Be in control of your liquidity

When providing liquidity in a concentrated liquidity pool on Ocelex, users are presented with a variety of strategic options. For those seeking a hassle-free experience, automatic management by an Active Liquidity Manager (ALM) is a convenient choice for certain liquidity pairs. However, if the desired pool isn't managed by an ALM, users can manually set their liquidity ranges.

1. Full Range Liquidity:

   • Offers liquidity across the entire price spectrum.

   • Trade-off: Lower capital efficiency and reduced fee generation compared to more focused strategies.

2. Strategic Range Options:

   • Safe Range:

     • Designed for lower risk tolerance.

     • Offers a broader range with a lower probability of going out of range.

     • Results in moderate fee generation potential.

   • Common Range:

     • Balances risk and reward.

     • Targets a commonly traded price range with a higher likelihood of fee generation.

     • Moderate risk of the position moving out of range.

   • Expert Range:

     • For experienced users willing to take higher risks.

     • Focuses on a narrower, potentially more volatile range.

     • Offers the highest potential for fee generation, with a correspondingly higher risk of moving out of range.

These options allow Liquidity Providers (LPs) to align their strategy with their risk appetite and market insights, maximizing their potential for earning fees while managing the risk of their positions falling out of the selected price ranges.