# Position Types ## Position Types Liquidity positions on Haiko can either be: 1. **Static positions** placed manually by users across a specific start and end price range. These are identical to regular positions on Uniswap 2. **Dynamic positions** placed and updated by Haiko Vaults 3. **Native Limit Orders**, a form of *impermanent* liquidity. ## How Liquidity Positions work Liquidity positions allow LPs to earn yield on their idle capital by accruing swap fees on trades executed through token markets. They work in the same way as they do on other AMMs like Uniswap. However, in a concentrated liquidity setting, positions only earn swap fees if they are **active** (meaning trades happen within their designated price range). If a position is placed outside of the market price, the liquidity will be single-sided. Changing market conditions can cause large fluctuations in the token mix of a position. If the market price moves outside of the price range of a liquidity position, it will also stop earning swap fees. This can reduce the yield achievable through static liquidity positions (which must be actively managed). ## Limit Orders under the hood Under the hood, limit orders are implemented as liquidity positions and batched across multiple users for efficient filling. They work by placing a liquidity position across two adjacent price limits, and automatically removing the position once filled. Incidentally, this means that limit orders accrue a swap *surplus* for traders, in the same way liquidity positions accrue swap fees for LPs. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://haiko-docs.gitbook.io/docs/protocol/amm/position-types.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.