🧜Liquidity Provision

What happens when my liquidity goes out of range?

When your liquidity position goes out of range (i.e., the current market price of the trading pair moves outside your set price range), your position will no longer earn trading fees. This is because fees are only generated when trades occur within your set price range.

Additionally, the tokens in your liquidity position will consist of only one of the two tokens in the pair, depending on the direction of the price movement:

What can I do if my position is out of range?

• Monitor: Check the "Liquidity" tab in the Liquidity panel to confirm your position’s status and token composition.

• Adjust: To resume earning fees, you can remove your current position and add liquidity again with a new price range that includes the current market price. Follow the steps in our How to Provide Liquidity guide.

• Wait: If you believe the market price may return to your range, you can leave the position as is, and it will start earning fees again when the price re-enters your range.

What is impermanent loss, and how does it affect my liquidity position?

Impermanent loss (IL) is a potential risk for liquidity providers in AMM-based pools on Monday Trade. It occurs when the relative prices of the tokens in a liquidity pool (e.g., MON and WETH) change after you deposit them, potentially resulting in a lower position value compared to holding the tokens outside the pool. For a detailed explanation, including why IL happens, its impermanent nature, and how it applies to Monday Trade’s AMM pools, refer to our Understanding Impermanent Loss section.

Why can’t I create a pool with my selected fee tier?

If you’re unable to create a pool, it’s likely because a pool with the selected fee tier already exists for the chosen trading pair. Monday Trade allows only one pool per trading pair and fee tier. Instead of creating a new pool, you can add liquidity to the existing pool.

Why can’t I create a pool with MON/WMON?

Instead of creating a pool with MON/WMON, you can wrap MON into WMON or unwrap WMON back to MON. On the spot trading interface for a MON pair, locate the balance of MON and click the wrap/unwrap icon next to it. Follow the prompts to convert your tokens, then proceed with adding liquidity or trading as needed.

Where can I find the liquidity pool I created?

After creating a liquidity pool on Monday Trade, you can locate it in the following places:

• Pool List: Go to the "Pool" page to view the pool you created in the list of available pools.

• Pool > My Liquidity: Visit the "Pool" page and check the "My Liquidity" section to see your added liquidity to the new pool and its details.

Portfolio > Liquidity Tab: Navigate to the "Portfolio" section, select the "Liquidity" tab, and find your added liquidity to the new pool under the "Liquidity" tab to view details and manage your position. For more information on managing your liquidity, refer to our How to Manage LP Positions guide.