# Terminology

**Margin:** The initial deposit made from your wallet. This is the capital against which leverage can be taken.

**Leverage:** Borrowed funds used to amplify your liquidity position. These funds are sourced from lending pools and increase your exposure to market movements.

**Borrow Ratio:** Represents the composition of borrowed tokens within your leveraged position. \
By adjusting this ratio, user can change their exposure to the market. \
For example, if a user borrows SOL, they will need to repay in SOL upon closing the position. If the market price of SOL decreases, the user can repurchase it at a lower price, thus profiting from the difference. 

**Size:** The total value of your position, calculated as: Margin + Borrowed Tokens.

**Swap:** The amount of tokens that will be exchanged in order to open the position. This value depends on your Borrow Ratio and Leverage settings.\
Once selected, DefiTuna calculates how many tokens need to be swapped to match the target deposit ratio for the chosen CLMM range. \
The swap amount is primarily influenced by the selected liquidity range and the composition of your borrowed tokens.

**Liquidation price:** The market price at which your position will be forcefully closed.\
At this point, all borrowed funds will be automatically returned to lenders to avoid bad debt. 

**Pair:** The token pair (e.g., SOL/USDC) in which liquidity is provided.

**Debt:** The total amount of borrowed tokens used as leverage in your position.

**Yield:** The fees earned in tokens as a result of providing liquidity within the selected range.

**APR (Annual Percentage Rate)** refers to the annualized interest rate charged when borrowing funds, excluding the effect of compounding, whereas **APY (Annual Percentage Yield)** represents the effective annual return, including the effect of compounding and showing how your earnings grow over time as interest is reinvested.


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