Health Score™
Health Score™ is a real-time range safety indicator (0 to 100%) measuring the geometric proximity of current market price to position tick boundaries.
1. Definition & Primary Objective
The Health Score™ provides an instantaneous visual and quantitative safety audit for individual concentrated liquidity positions. It tracks price drift relative to configured upper (p_max) and lower (p_min) boundaries, alerting LPs prior to Inactive/Out-of-Range states.
Provide automated warning signals before positions drift out of range and stop earning swap fees.
2. Mathematical Formulation
Health_Score = 100 * (1 - 2 * |CurrentPrice - MidPrice| / (UpperPrice - LowerPrice))Geometric distance from range boundaries normalized to 100% at midpoint and 0% at boundary limits.
- CurrentPrice:Spot market price from sqrtPriceX96
- MidPrice:Geometric midpoint: sqrt(LowerPrice * UpperPrice)
- UpperPrice:Upper range boundary from tickUpper
- LowerPrice:Lower range boundary from tickLower
3. Input & Output Vectors
Health Score™ is a real-time concentrated liquidity range safety metric (0-100%) tracking price proximity to configured tick boundaries. Scores near 100% indicate centered price, while sub-20% scores signal imminent Out-of-Range fee halt.
4. Knowledge Graph Relationships
5. Frequently Asked Questions
What does Health Score™ measure in concentrated liquidity?
When price touches 0%, the position transitions into an Out-of-Range state, halting swap fee collection until rebalanced or until price returns.