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Liquidity provisioning supplies assets to an AMM pool so swaps can execute with deterministic, on-chain settlement. In an institution-operated Levery venue, liquidity is expressed as a range-based position: each position defines a minimum price and maximum price and contributes liquidity according to where the pool price sits relative to that band. The same mechanism supports both:
  • Full-range positions (maximally wide band), and
  • Custom-range positions (finite band for higher concentration).
Create Position

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How range-based positions behave

A position is defined by:
  • Pair: Token0 / Token1
  • Range: Min Price and Max Price
  • Liquidity: the minted on-chain amount derived from deposited token amounts and the selected ticks
Fee accrual follows a simple rule:
  • LP fees accrue when swaps execute while the position is active.
  • A position is active when the pool price is within the selected range.
  • If the pool uses dynamic LP fees, the realized LP fee rate can vary under the pool’s configured logic.
Authoritative outcomes are on-chain. Interface values are derived from contract state, logs, and indexer reconciliation, and can be independently verified via transaction hashes and state reads.

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Price direction and deposit composition

Prices are displayed in a consistent quote direction. Deposit requirements are determined by the relationship between the current price and the selected band:

Price inside the selected range

The position requires both tokens. The interface typically computes the corresponding amount on the other side so the deposit matches the selected range geometry.

Price outside the selected range

The position becomes effectively single-sided:
  • Below range → Token0-only
  • Above range → Token1-only
If the current price is inside the selected range and one side is zero, the position creation transaction is rejected. Both token amounts must be provided (often via auto-fill on the second side).

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Full range vs custom range

Full range and custom range are two strategies over the same range-based position model.

Full Range

Uses the widest admissible band for the pool. The position is typically active across most market states overall now.Suitable when prioritizing continuity of activity and minimizing out-of-range events, accepting lower fee density per unit of capital.

Custom Range

Defines a finite Min/Max band around a target price region. The position becomes inactive when price exits the band.Suitable when maximizing fee density near an expected trading band, accepting a higher probability of moving out of range.

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Ticks and range granularity

Ranges are implemented using discrete ticks. Each pool defines a tickSpacing, which constrains the minimum step size for range movement. Operationally:
  • Slider selection snaps to tick boundaries.
  • Min/Max step controls adjust by tick increments.
  • Zoom affects visualization only; it does not alter the selected tick boundaries.

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Costs, fees, and what accrues

Liquidity provisioning involves distinct accounting categories:

LP fees (earned)

Accrue when swaps execute while the position is active. Realized earnings depend on executed volume, fee configuration (static/dynamic), and the position’s liquidity share at active ticks.

Network gas (paid)

Required for approvals and for the position creation transaction.

Service fees and policy constraints

Service fees are not charged on liquidity events (mint, increase, decrease, collect, close). They are applied only on swap execution flows.Liquidity provisioning can still be subject to institutional controls, such as eligibility checks, allowlists, and risk-tier rules, enforced by the venue’s policy layer.

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Pricing layers and provenance

The Invest page commonly uses two pricing layers with different objectives:

Execution-relevant pool price

Range geometry, in-range status, and token composition are derived from the pool’s on-chain state (e.g., sqrtPrice/tick). This is the source of truth for execution outcomes.

Fiat valuation and history

Fiat conversions and historical charts are backed by institution-approved pricing feeds (oracle and indexed market data), supporting auditability and consistent reporting.

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Create a liquidity position

1

Open Invest for the target pool

Access the pool’s Invest screen (commonly via Pools → Invest). Validate:
  • the chain/network where the pool is deployed,
  • the pair (Token0 / Token1),
  • and the displayed price direction used for Min/Max inputs.
2

Connect a wallet and align the network

Select Connect Wallet and connect a wallet authorized to interact with the institution’s venue.If the wallet network does not match the pool’s chain, execution is blocked until the wallet network is switched. Some connectors can request a network switch; otherwise, manual selection in the wallet is required.
3

Select range strategy and define the band

Choose Full Range for a maximal band or Custom Range for a finite band.For Custom Range:
  • set the band using the slider,
  • refine Min/Max using numeric inputs,
  • and apply tick-step controls for precision.
4

Enter deposit amounts

In Deposit Tokens, enter the intended contribution amount.The interface computes deposit composition from:
  • current pool price state,
  • selected tick boundaries,
  • and range liquidity math (mapping token amounts to minted liquidity).
When the current price is inside the band, the second token side must be populated (commonly via auto-fill). When price is outside the band, the deposit can be effectively single-sided.
5

Complete token approvals (ERC-20 only)

ERC-20 deposits generally require allowances before funds can be pulled during position creation. Many Levery deployments use a hardened two-layer allowance model:
  1. Token → Permit2 (token allowance granted to Permit2)
  2. Permit2 → Position Manager (Permit2 allowance granted to the pool’s position manager)
Each approval is an on-chain transaction and requires gas. Native-currency legs do not require ERC-20 approvals.
6

Submit and confirm position creation

Submitting broadcasts a single on-chain execution that:
  • mints liquidity for the selected ticks, and
  • settles the token pair transfer required for that mint.
The interface typically performs a preflight simulation to surface common failures early (missing approvals, insufficient balance, invalid range ordering, or policy enforcement).
7

Verify and monitor the position

After confirmation:
  • the position becomes visible in Positions,
  • in-range status and composition are tracked over time,
  • and fee accrual is exposed through on-chain accounting.
Many Levery deployments represent positions as non-transferable position tokens (soulbound), binding control to the owner wallet rather than enabling transfers.

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Troubleshooting

Create button disabled

Typical causes: wallet not connected, network mismatch, pool state not loaded, or missing token metadata required to compute deposits.

Both token amounts required

If current price is inside the selected band, both sides must be non-zero. Single-sided deposits only succeed when price is outside the band.

Approval required

One or both allowance layers may be missing. Complete Token → Permit2 and Permit2 → Position Manager approvals, then retry after confirmations.

Provisioning not authorized

Some pools restrict liquidity providers. If provisioning is blocked by policy or allowlisting, an institution administrator must enable liquidity permission for the account.

Simulation failed / transaction reverted

Common causes: insufficient balance, stale allowance state, invalid tick ordering, or enforcement by pool policies and permission modules. Refreshing state after confirmations can resolve indexer-latency symptoms.

Network mismatch

Wallet network must match the pool’s chain. If connector switching fails, manual wallet network selection is required before retrying.

Information useful for support and reconciliation

When escalation is required, provide: chain id, pool id, selected Min/Max, deposit amounts, and transaction hashes for approvals and the create-position attempt.

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Risk notes

Liquidity provisioning is market exposure, not guaranteed yield.

Range and activity risk

When price exits the selected band, the position stops earning fees until price returns. Narrower bands can increase fee density but increase the probability of range exit.

Composition and performance risk

Token composition changes as price traverses the band. Relative to holding the tokens, performance may underperform depending on price path and fee capture (impermanent loss dynamics).

Smart contract and network risk

Outcomes depend on contract behavior, network finality, and execution conditions. Institutions typically mitigate risk through audits, controlled deployments, and operational monitoring.
Eligibility checks, allowlists, and pool-level controls can restrict liquidity provisioning. If provisioning is blocked, resolution requires an operator action under the institution’s governance and compliance process.