# Active and Inactive Liquidity As asset prices change, they may move beyond the price range defined by LPs. When this happens, liquidity for that position becomes inactive, and fees stop accumulating until the price returns to the defined range. When prices shift, LPs accumulate more of one asset as trades occur. This continues until the position holds only one asset. However, unlike traditional models, concentrated liquidity allows LPs to avoid extremes (e.g., 0 or ∞) by setting precise price intervals. Once the price reenters the defined range, the position becomes active again, and LPs resume earning fees. LPs can also create multiple positions with different price ranges, offering flexibility to spread liquidity across various ranges. This approach helps maximize earnings while keeping liquidity active as often as possible. Concentrated liquidity provides LPs with detailed control over their strategies, letting them focus liquidity where it’s most effective. This supports higher returns and promotes a more efficient trading system overall. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.evo.market/introduction/about-concentrated-liquidity/active-and-inactive-liquidity.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.