Orders vs Positions As a maker, you place liquidity in price ranges—these are orders. Once some of your liquidity is used in trades, you will hold more/less tokens than before—this is a position.
Impermanent Position
After you provide liquidity, you will have an ‘impermanent position’ once the mark price moves away from the price at the time you added liquidity.
The impermanent loss is shown on the asset's pool page and click on the down arrow next to it to see your impermanent position (as shown below).
Example
If the mark price was $4000 / ETH when you added liquidity:
- Price moves above $4000 → you will have a short position
- Price moves below $4000 → you will have a long position
This is called an impermanent position because in theory if the price returns to exactly $4000, you will no longer have a position. In practice, you will always have a very small ‘dust position’ because the price will likely never return to exactly the point at which you provided liquidity.
Impermanent to Permanent
If you have an impermanent position and remove your liquidity, this position will become “permanent”. This means it will be converted into a regular position appearing in the Trade tab. If you have an existing position for the same asset, your maker position will be combined with that position.
Fees
- Adding / removing liquidity has no fee (besides gas costs)
- Impermanent to normal position conversion has no fee
- Closing this normal position will cost 0.1%, just like any other normal position
Funding
Funding payments are earned or payed on positions in the same way as a position opened as a taker. See more at Funding payments.