Terminology

Directional Bias: An icon that indicates your current market position: "Short" , "Long" or "Delta Neutral". It helps users quickly understand the directional exposure of their strategy.

Collateral: 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 directional bias. 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.

Position Size: The total value of your position, calculated as: Collateral + Borrowed Tokens.

Slippage Settings: The maximum allowed price deviation (in %) between the initiation and the execution of a position. If the market price moves beyond the allowed slippage threshold during execution, the position will fail to open.

APR (Annual Percentage Rate): The annualized interest rate you are charged when borrowing funds, excluding the effect of compounding.

APY (Annual Percentage Yield): The effective annual return, including the effect of compounding interest. APY represents how your earnings grow over time due to reinvested interest.

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.

(Opened positions Section)

Pool: 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.