Liquidity providers
How your liquidity position works
Follow your token mix, fees, and withdrawals.
Know which token may remain
For a price quoted as B per A, the position holds A below its range and B above it.
- Inside the range, it holds a mix of A and B.
- A narrow range can stop being active sooner.
Full notes
Know what you will hold
With prices quoted as B per A, a concentrated position holds A below its range, a mix inside, and B above it. A tighter range concentrates capital but can become inactive sooner.
Separate fees from token rewards
Swap fees come from trades. Token rewards come from a pool’s emissions.
- The documented fee-only default gives LPs 95% of swap fees.
- The gauged default sends swap fees to voters and token rewards to eligible LPs.
- Token rewards become available to claim according to the pool’s schedule.
Full notes
Keep the income streams separate
Read the live fee split, eligible emissions and any reward protection timer. The documented fee-only 95/5 policy and gauged 0/100 LP/voter fee policy are different setups.
How your result is calculated
Your current tokens, collected income, and costs make up your liquidity result.
- A holding comparison values your original tokens at the same current prices.
- Your active share depends on liquidity at the prices where swaps take place.
Full notes
Compare fairly
Use the same starting token quantities for the holding benchmark. Separate principal, fee income, incentives and costs. For CL, do not estimate active share with deposit divided by total TVL.
Know how fees leave the pool
Concentrated liquidity and DLMM handle fee collection differently.
- Collecting concentrated-liquidity fees does not move your price range.
- DLMM fees stay in pool bins; you receive them by removing liquidity.
Full notes
When leaving
CL fee collection does not move the range. DLMM fees stay in bin reserves and are realized through removing liquidity. Review the exact transaction preview for the product you use.
Try three price outcomes
Explore the starting price, a price below your range, and a price above it.
- Below range leaves A; above range leaves B, when the price is B per A.
- Compare each outcome with holding your actual starting tokens, including costs.
- If price returns through an open range, the token conversion can reverse.
Full notes
Three scenarios before depositing
Describe the outcome at an unchanged price, below the lower bound and above the upper bound. For B per A pricing, below range leaves A and above range leaves B. Use actual starting quantities for each holding comparison.
- Unchanged: what fee assumptions and costs remain, even without a net price move?
- Below range: are you comfortable holding the acquired A inventory?
- Above range: are you comfortable having sold A into B?
- Retrace: will the position remain open and available to convert back?
How fees and costs affect value
Add separate fee and reward income to token value, then subtract costs. Income already included in token value stays there.
- LP result: current token value plus separate income, minus related costs.
- Holding comparison: value the original token amounts at the same current prices.
- Subtract the holding value from the LP result to compare them.
Full notes
A review ledger
Keep inventory and income separate. If a value already includes retained fees, do not add those fees again. Record emission quantities and their valuation prices independently.
- LP outcome: current inventory value + separately held or accrued income − attributable costs.
- Holding benchmark: original A quantity × current A price + original B quantity × current B price.
- Relative result: LP outcome − holding benchmark, with the same measurement date.
- Costs: entry swaps, gas, management, withdrawal and any external service charge.
Example: calculate a position’s value
An example starts at $1,000. Later, $970 of tokens plus $12 of fees minus $5 of costs equals $977.
- The result is $23 below the starting value.
- Holding the starting tokens would be worth $985, so the LP result is $8 lower.
Full notes
Worked review · illustrative
A $1,000 position has $970 of principal, $12 of separately accrued fees and $5 of costs. Its net value is $977, or $23 below entry. If holding the same starting tokens would be worth $985, the LP trails that benchmark by $8. The fees are real within the example, but they did not make the total result positive.
Robinhood revenue buys RAM
Since October 14, 2026, all Robinhood protocol revenue routes to BuybackModule for market purchases of RAM. Sarcophagus is closed there.
- The fee-only default remains 95% LPs / 5% protocol; buybacks use the protocol portion.
- Authorized execution sends RAM to the dead address without reducing Robinhood totalSupply.
- Direct RAM input can skip the purchase. Buybacks guarantee neither price gains nor net deflation.
Full notes
Robinhood protocol revenue → RAM buybacks
Since October 14, 2026, 100% of protocol revenue on Robinhood Chain is routed to BuybackModule; the Sarcophagus is closed there. Accumulated revenue funds taker-side market purchases of liquid RAM, which is sent to the dead address. This redirects protocol revenue, not all swap fees. The documented fee-only default remains 95% LPs / 5% protocol; the gauged default remains 100% of swap fees to voters, with configurable exceptions.
Advanced Risk Check
- Compare your full result with holding the same starting tokens; fees alone do not show profit.
- Check the pool’s live rules, any reward timer, and how to withdraw.
- Swap fees and token rewards follow different rules. Check the pool you plan to use.
- Check whether a reward timer affects your claim.
- Compare the full result: Compare supplying liquidity with holding the same starting amounts of each token. Track token value, fees, rewards, and costs separately. For concentrated liquidity, deposit divided by total pool value does not measure your active share.
- Check what happens at the starting price, below your range, and above it.
- Track value without counting it twice: Keep token holdings, income, and costs separate. Fees already included in a value must not be added again. LP result: current token value plus separate income, minus related costs. Holding comparison: value the original token amounts at the same current prices. Subtract the holding value from the LP result to compare them.
Check before you confirm
Read the details in the real app and wallet before signing.
- Check the network, token addresses, pool type, price direction, and range.
- Check who can spend your tokens, spending limits, transaction limits, and gas costs.
- Check the exit steps and any reward timer.
Full notes
Before confirming
Check each item in the real app.
- Network, token contracts and pool model.
- Price direction, range, required token mix and current fee rules.
- Approval spender, allowance, transaction limits and available gas.
- Exit steps and any timer affecting rewards.
Keep a simple position record
Write down your starting details so you can compare them later. A complete record does not prove safety.
- Save the date, network, pool address, token addresses, and starting token amounts.
- Record your range, swap fee, LP fee share, rewards, and reward timer.
- Record who owns the position, when to review it, and how to exit.
Full notes
A position card you can reuse
Record these fields at entry, then use the same definitions at review. A completed card explains the position; it does not certify that it is safe.
- Identity: date, chain, pool address, token contracts and pool model.
- Entry: token A quantity, token B quantity, valuation prices, lower and upper bounds.
- Economics: swap fee, retained LP share, separately eligible rewards and reward timer.
- Operations: position owner, planned review time, exit action and gas reserve.
Explain your next action
Before changing a position, say why you are acting and what you expect to receive.
- Name the action: collect, add, remove some liquidity, or close.
- Check reward warnings and the tokens you expect in your wallet.
- Afterward, compare the confirmed result with your plan.
Full notes
A useful management note
Before acting, finish this sentence: “I am collecting, increasing, reducing or closing this position because ___. After confirmation I expect ___ tokens in the wallet and ___ liquidity remaining.” Read any reward warning, then reconcile the transaction with that expectation.
Reference table
| Price in B per A | Position inventory | Question to answer |
|---|---|---|
| Below the lower bound | Only token A | Do I want to hold this A inventory? |
| Inside the range | A and B | How much competing liquidity is active? |
| Above the upper bound | Only token B | Am I comfortable having sold A? |
At the exact bounds, inventory is one-sided. Fees depend on trading through eligible active liquidity, not only the final price.