Position Caps

The LP can set caps to limit individual position sizes, managing pool risk.

Two cap types

Hard cap — maxPositionUsd

A fixed USDC amount. No single position can exceed this value.

• Set via setPositionCaps(maxPositionUsd, maxPositionBps)
• Set to 0 to disable
• Example: maxPositionUsd = 1000e6 limits each position to 1,000 USDC

Soft cap — maxPositionBps

A percentage of backedAirUsd in basis points (10,000 = 100%).

• Valid range: 10–9,900 bps (0.1% – 99%)
• Set to 0 to disable
• Example: maxPositionBps = 500 limits each position to 5% of pool TVL

Both caps are checked independently — a position must satisfy both (if active).

Setting caps

pool.setPositionCaps(maxPositionUsd, maxPositionBps)

Only the LP NFT holder can call this. Caps can be raised, lowered, or cleared at any time. Changes apply to new positions only — existing positions are not affected.

Strategy

Goal	Recommended caps
Maximum volume	Both set to 0 (no caps)
Conservative LP	Low bps cap (e.g., 200 = 2% of TVL)
Fixed risk per trade	Dollar cap (e.g., 500 USDC)
Balanced	Both active — dollar cap + TVL percentage