# Price Ranges ## How Do Liquidity Price Ranges Work? In concentrated liquidity market maker (CLMM) pools, users set specific price ranges where they provide liquidity. Liquidity providers (LPs) earn fees based on their share of liquidity at the current market price. This encourages LPs to actively manage their positions to keep the price within their selected range. If the market price moves outside an LP's chosen range, their position stops earning fees and becomes inactive. LPs may also face higher impermanent loss. Similar to traditional AMM pools, when the base token price rises, traders swap the quote token for the base token, leaving the pool—and the LP—with more of the quote token and less of the base token. In CLMMs, these effects happen faster within the chosen range: * If the price falls below the minimum range, the LP’s position becomes fully composed of the base token. * If the price rises above the maximum range, the LP’s position fully converts to the quote token. This setup gives LPs more control over their liquidity and the chance for higher returns. However, it also requires careful monitoring to avoid being out of range and missing out on fees. --- # 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/price-ranges.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.