Do I get "liquidated" if the price goes outside of my range?#
No. Liquidity providers are not liquidated when the pool's current price moves outside their position's set price range.
The current price of a pool can move outside a position's set price range due to swap activity.
These positions are out of range, single-sided, and do not earn fees until the current price of the pool moves back into the set range. This is only possible with concentrated liquidity on CenturionDEX v3.
Instead of being liquidated, the ratio of tokens in the position simply shifts based on activity in the pool.
Here is an example:
- A liquidity provider sets a price range of 1,000 to 5,000 stablecoin per CTN.
- If CTN falls to 900 stablecoin, the position becomes 100% CTN.
- If CTN rises to 6,000 stablecoin, the position becomes 100% stablecoin.
In every case the position still holds assets; it is simply inactive and converted to one side until price returns to the range.