Providing Liquidity
Providing liquidity means making assets available for swaps inside a price range and receiving a share of the fees generated there.
What you provide
A market contains two assets. A range that surrounds the current price normally requires both. A range entirely above or below the current price begins with one asset, because it is waiting for price to trade into it. The deposit quote shows the required composition for the exact bounds you selected.
What trading does to the position
Traders exchange one side of the pool for the other. As they do, the position sells the asset rising relative to the pair and accumulates the other asset. An active position therefore has a changing token mix, not a fixed basket. Once price moves beyond a boundary it is inactive, generally one-sided and no longer earns fees until price returns.
What you earn
A swap fee is charged to each trade and accrues to the active ranges it crosses. Your share depends on how much liquidity you have at those prices relative to everyone else. Fees remain claimable until collected; they are not automatically added back to principal.
Points and weekly creator rewards are separate programmes with their own eligibility and settlement. They are not part of the pool's swap-fee accounting. See Points & Fees.
What you are risking
The relevant comparison is not only whether the position earned fees. It is whether its current assets plus collected and claimable fees are worth more or less than holding the original assets. Price movement, contract defects, token restrictions and chain availability can all produce a loss. Managing Positions explains the economic part.
