Mechanics
Trades pay a dynamic 1%–10% fee. The rate changes with the direction of the move, and each side feeds a different outcome.
Pricing
The pool compares each trade with a moving reference built from its own successful swaps. No outside price is submitted.
The reference
The reference is a recursive moving average with a 1/60 update. It keeps sub-tick precision and advances only when a valid swap supplies a new observation.
A sustained move is followed as successful trades continue. Waiting alone does not move it, and a burst of swaps sharing one Solidity block-number value cannot accelerate it.
The rate is the average of the response across the whole move, not a reading taken at one price, so splitting the same move into several trades pays the same total.
A move toward the reference falls toward 1%, unless it crosses through and stretches far enough into the other side.
The response starts at 1.00%, adds 0.02% per away-side tick, and stops at 10.00%, which it reaches about 4.6% away from the average.
Observation rule. The reference samples at most once for each distinct Solidity block.number value, and only after a positive-output swap that ends with active liquidity.
Fee flow
The fee arrives in the currency the trade receives. That creates two distinct paths with no extra action from the holder.
Dead address
The entire amount is sent to the burn address as it is collected. The ERC-20 supply constant does not change; the transferred tokens simply remain at the dead address.
Liquidity below
A retained share becomes claim-backed inventory. When the placement checks pass, available inventory may fund a one-sided range beneath the market: a resting bid.
Collection is immediate. Placement is conditional, so inventory can remain queued until the pool qualifies.
Standing bid
An eligible placement starts as pair-token-only liquidity below the current market. When price reaches it, the range trades like ordinary concentrated liquidity.
Placement levels follow the market. Separate placements may form a ladder or merge into the same range.
The range begins beyond the aligned current tick and spans four tick spacings. At placement it contains only the pair currency.
As price moves into a band, normal AMM execution gives up pair token and receives MAGNET. Price and composition both change through the range.
The hook has a path to add this liquidity and no path to remove it. Its active depth can still change as market price moves in and out of range.
At launch
The fixed supply is committed to a one-sided position whose NFT is sent to the dead address; small rounding dust follows it there. No pair token is supplied at launch, so a successful first trade must cross into active liquidity and return positive output.
Before placement
Failure stays contained. An in-swap placement attempt is isolated; if it cannot complete, the claims remain and the trade can continue. A permissionless backstop can retry an already-qualified placement.
Fixed rules
These values are fixed in the code and have no setter.
Minimum complete fee.
Maximum in either direction.
Added per away-side tick; reaches the ceiling ~4.6% from the average.
Recursive smoothing coefficient.
Sub-tick fixed-point precision.
Authorized pool spacing.
Four tick spacings per range.
Maximum execution distance.
Required to earn a tranche.
Owned-depth budget, clipped by active depth.
Fixed at creation.