Farm FAQ

My position has a semi-long directional bias. Why is my collateral decreasing even though the price is going up?

With a semi-long directional bias, you benefit from price appreciation up to a certain point. Beyond that, since you're selling the best-performing asset in the pair — which also constitutes part of your debt — the value of your debt increases faster than your collateral, leading to a reduction in your profit.

This phenomenon is visible on the PnL chart at the top of the page.

In this example, the PnL chart shows that starting at $185, your collateral's profit begins to decrease.

My position has a neutral directional bias, the prive moved out of my range and I'm experiencing a loss. Why?

You've realized your impermanent loss. A neutral position is essentially short volatility. In such a strategy, your goal is to close the position as close as possible to your entry price, especially if the position was opened at the midpoint of your range.

The PnL chart highlights that the maximum loss within the range occurs at the edges. Once the price moves outside your range, you're no longer earning swap fees, meaning there's no yield to offset the impermanent loss.

Therefore, if the swap fees generated don't outweigh the impermanent loss, you end up with a net loss when you exit the position.

Further information on the Neutral Farming strategy can be found here.

Despite my position having a full-long directional bias, my potential upside profit is very small. Why is that?

When taking a full-long directional bias, it’s important to set your range so that your initial deposit is primarily composed of the token you’re long on. This ensures that as the token’s price increases, your position gradually converts that token into the paired asset — effectively locking in gains as the price rises.

If your range is too wide or positioned too far above your entry price, your position may start off with too much of the quote asset, limiting your exposure to the upside. For an effective full-long setup, you generally want to position your lower bound close to your entry price, while leaving room on the upside for price appreciation.

This way, your position can capture more profit as the price moves up through your range.

Further information on the Long Farming strategy can be found here.

My PnL shows a profit, but when I try to withdraw, I end up with less SOL than I initially deposited. Why?

By default, PnL is shown in USD ($), meaning it reflects your performance relative to holding USDC in your wallet.

By clicking the “T” button, you can switch the PnL display to reflect performance in tokens, based on the token selected in the top-right corner of the PnL chart (e.g., “PnL in SOL”). You can click the arrow to switch to the other token in the pair.

Example:

• You deposited 10 SOL when the price was $160 → total value = $1,600

• The price of SOL rises to $180, and your liquidity position is now worth $1,710

• In USD terms: $1,710 - $1,600 = $110, so your PnL in USD is +$110

• However, in SOL terms: $1,710 / $180 = 9.5 SOL, meaning you now hold 0.5 SOL less

• So your PnL in SOL is -0.5 SOL

Therefore, always refer to the PnL chart and select the appropriate view (token A or token B) to understand your performance in the unit that matters to you.