Manual Ranges

Be in control of your liquidity

When providing liquidity in a concentrated liquidity pool on Catex, 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:

   • ✅ Simple, requires no adjustments.

   • ⚠️ Lower capital efficiency and reduced fee earnings.

2. Strategic Range Options:

   • Safe Range: Designed for lower risk tolerance.

     • ✅ Less chance of going out of range.

     • ⚠️ Moderate fee generation potential.

   • Common Range: Balances risk and reward.

     • ✅ Higher probability of earning fees.

     • ⚠️ Moderate risk of moving out of range.

   • Expert Range: Narrow range for high returns.

     • ✅ Maximizes fee earnings.

     • ⚠️ Higher risk of price moving out of range.

These strategies allow Liquidity Providers (LPs) to optimize earnings based on their risk tolerance and market expectations.