# Terminology

* **Pool:** Vessel’s AMM pool consists of two assets, the base asset and the quote asset, aligning with trading pair terminology. For example, in an ETH/USDT pool, ETH is the base asset while USDT is the quote asset.
* **Tick:** A tick represents discrete prices used in the AMM pool. Each pool is instantiated with a predefined set of ticks that remain unchanged throughout its lifecycle. In Vessel, ticks are defined in an arithmetic sequence, represented as a tuple $$\<Tick\_0, TotalTicks, TickSpacing>$$:

  ▪ $$Tick\_0=MinPrice$$

  ▪ $$Tick\_i=Tick\_0+TickSpacing \times (i-1), 0 \le i < TotalTicks$$
* **Interval:** An interval is the minimal divisible price range in the AMM pool. $$Interval\_i$$ covers the price range $$\[Tick\_i, Tick\_{i+1}]$$, managing buy orders at $$Tick\_i$$ and sell orders at $$Tick\_{i+1}$$.
* **Liquidity:** Liquidity is the total size in base asset of orders managed by the AMM within a specific range. The liquidity of $$Interval\_i$$ is the sum of buy order sizes at $$Tick\_i$$ and sell order sizes at $$Tick\_{i+1}$$. The pool's total liquidity is the sum across all intervals.
* **Position:** A position indicates how an LP provides liquidity within a specific range, defined by $$\<Tick\_L, Tick\_R,L>$$, covering $$\[Tick\_L, Tick\_R]$$, with $$L$$ liquidity in each interval.


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