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Gatevia Spot AMM Pools – How It Works
A practical guide to creating, funding and managing an automated Spot liquidity pool.
Key Takeaways
An AMM pool places ordinary LIMIT orders into the selected Gatevia Spot order book.
You fund your pool with BASE and QUOTE from your available Spot balance.
Filled orders change the pool's reserves; the worker then manages subsequent order placement.
Simulation is a preview, not a guarantee of fills, prices or profit.
Eligible accrued operator and pool fee shares can be claimed to your available Spot balance.
1. What Is a Gatevia Spot AMM Pool?
A pool manages a set of buy and sell offers on a Spot market.
You assign BASE and QUOTE assets to a pool. Gatevia uses those reserves and your settings to calculate a series of price levels and places normal LIMIT orders on the selected Spot market. The pool is designed to maintain offers on both sides of the market; actual trading happens only when an order matches an opposing order in the Spot order book.
Is it a direct swap against a separate pool?
No. Gatevia Spot AMM does not execute a separate, instant swap directly against a smart-contract pool. It represents the pool's buying and selling strategy through ordinary Spot LIMIT orders. These orders can be seen in the Spot order book and execute through the usual matching process.
How are the pool's prices calculated?
The order levels are calculated from the pool's current BASE and QUOTE reserves using a constant-product curve concept (x × y = k). The reserve ratio provides a reference price, and the strategy creates discrete LIMIT-order levels around that curve. Actual order prices can be adjusted to match the market's price tick and avoid crossing existing opposing orders.
Important: The pool does not set or guarantee the market price. The price of an executed Spot trade is the price at which the matching orders trade.
2. Creating Your First Pool
- Choose a Spot market.
Select the market pair you want your pool to support. The market must be active and available for AMM trading, with both BUY and SELL sides enabled. - Enter the initial BASE and QUOTE amounts.
The assets are transferred from your available Spot balance into the balance allocated to your pool. This is an internal Gatevia balance transfer, not an on-chain transaction. The funds become working reserves for the pool. - Configure the order strategy.
Choose the number of BUY and SELL levels, price spacing, reserve usage and any per-order BASE limits. - Preview the plan.
Use Find valid settings & preview or the simulation to inspect the orders that could be placed with the selected reserves and current market conditions. - Create and fund the pool.
Gatevia performs a server-side check before moving the funds. If the requested configuration cannot produce the requested BUY and SELL levels, creation is rejected and the initial amounts are not transferred.
Before creating: Check that you entered the correct market and amounts. Pool reserves may change through executed trades, so the assets returned when you close the pool may differ in quantity and ratio from your original deposit.
3. Understanding the Settings
Price step (%)
Controls the spacing between consecutive price levels. A smaller spacing places levels closer together; a larger spacing spreads them farther apart. The allowed range is 0.01% to 10%.
BUY levels and SELL levels
These set the target number of buy and sell order levels, from 1 to 20 on each side. A requested number of levels is a target: market rules, available reserves and existing orders can affect what can actually be placed.
Maximum reserve usage (%)
Sets the maximum fraction of the relevant BASE and QUOTE reserves that the strategy may allocate to orders. Existing order locks and market constraints also affect how much can be used.
Minimum and maximum BASE per BUY / SELL
These limits control the BASE amount of each individual order separately for BUY and SELL. A value of 0 for a minimum means no extra user-defined minimum beyond the market's own minimum; a value of 0 for a maximum means no additional user-defined maximum. The market's minimum order requirements still apply.
What happens when I edit settings?
The proposed settings are checked against the current reserves and market conditions before they are saved. Saving settings does not immediately cancel or replace existing open orders. The worker uses the new settings for subsequent order placement and replenishment. A change may therefore take time to be fully reflected in the live order book.
4. Simulation & Suggested Settings
What does the simulation show?
The preview estimates the BUY and SELL orders that could be placed using the entered reserves and settings. Depending on the preview presented, it can show prices and amounts, reserve allocation or locks, estimated market fees and fee shares, price adjustments, and levels that were skipped because of market or configuration constraints.
Does simulation create orders or move funds?
No. Simulation is a preview only. It does not create a pool, place live orders, execute trades or transfer your funds.
What does “Find valid settings & preview” do?
It first checks your current settings. If they do not produce the requested number of levels, the search tries alternative price spacing. If needed, it then tries a smaller number of BUY and SELL levels. It keeps the entered BASE and QUOTE amounts unchanged and does not automatically loosen your per-order minimums or maximums.
Not a guarantee: A successful preview means the plan passed the checks at that moment. The Spot order book can change before you create the pool, so the final validation may produce a different result.
5. Orders, Fills & Rebalancing
Are the pool's orders real Spot orders?
Yes. The pool places ordinary LIMIT orders on the selected Spot market through its designated trading account. They participate in the normal Spot order book and matching process.
When does a trade happen?
A trade occurs only when an opposing order matches a pool order. The pool cannot guarantee that its orders will be filled, how quickly they will fill, or that the market will trade at every displayed level.
What happens after an order is filled?
The relevant BASE and QUOTE reserves are updated to reflect the executed trade and the AMM order's fee. The worker then assesses the pool and can place or replenish orders using the updated reserves. Since reserves and market conditions change, the next order grid may differ from the previous one.
Does AMM trading count as Spot trading volume?
Executed trades against pool orders are real trades matched in the Spot market and are treated as Spot executions. Merely creating a pool, running a simulation or placing an unfilled order does not itself create executed trading volume.
6. Fees & Claiming Accrued Fees
Are AMM orders charged a normal Spot fee?
Yes. When an AMM order executes, the AMM side is charged the market's normal Spot trading fee. The other participant also pays their own applicable normal trading fee. The fee split is an allocation of the AMM order's fee, not an extra fee added to the counterparty's trade.
How is the AMM fee divided?
The configured AMM fee settings define the portions assigned to the operator, the pool and the exchange. The operator portion is distributed among eligible active pools on the same market according to their contribution weights. The pool portion is attributed to the pool whose order generated the fee, while the exchange portion is retained by Gatevia. The percentages are configuration-dependent and should not be assumed to be fixed.
Are fee shares added to the pool's working reserves?
No. Fee shares are tracked separately from the BASE and QUOTE reserves used to maintain orders. Claiming accrued fees transfers eligible operator and pool fee amounts to your available Spot balance; it does not close the pool or withdraw its working liquidity.
How do I claim fees?
Use Claim fees when you have accrued, claimable operator or pool fees. The accrued amounts are grouped by coin and transferred to your regular available Spot balance. The exchange's retained fee share is not claimable through this action.
7. Adding More Liquidity
Can I add funds after creating a pool?
Yes. You can add more BASE, more QUOTE, or both, provided you have enough available Spot balance. The added assets increase the pool's reserves. If the pool is active, the worker can refresh its orders using the updated reserves.
Do I have to add BASE and QUOTE in the same ratio?
The funding form allows the two amounts to be entered independently; at least one must be greater than zero. Adding different amounts changes the pool's BASE-to-QUOTE reserve ratio, which affects the reference price and the order grid that can be generated.
Is adding liquidity the same as claiming fees?
No. Adding liquidity transfers more assets into the pool's working reserves. Claiming fees transfers accrued eligible fee shares out to your available Spot balance.
8. Automatic Pause, Resume & Closing a Pool
Can a pool be paused automatically?
Yes. The worker can pause an active pool if AMM operation is disabled, the market is no longer active or allowed, or the market no longer supports one of the required trading sides. The worker then attempts to cancel that pool's open orders. A pause is not the same as closing the pool.
How do I resume a paused pool?
Use Resume when the market again meets the requirements. The pool is marked active and the worker will attempt to recreate its LIMIT orders. Resuming does not add funds to the pool.
What happens when I close a pool?
Closing is a process rather than an instant payout. The pool enters a closing state; the worker cancels its open LIMIT orders and then returns the pool's remaining BASE and QUOTE reserves to your available Spot balance. Wait for the process to finish before assuming the funds have been returned.
Will I receive exactly my original deposit back?
Not necessarily. Executed buys and sells change the quantity and ratio of the reserves. Closing returns the pool's current remaining reserves, not a guaranteed copy of the original deposit, and it does not guarantee a profit.
9. Important Risks & Practical Notes
Does a pool guarantee trades or profit?
No. Orders may remain unfilled, market prices can move, and executed trades change the assets held by the pool. There is no guarantee of trading volume, fee income, a particular exit price or profit.
Can the live order book differ from the preview?
Yes. The simulation reflects the market data and reserves available when it runs. Price ticks, minimum order sizes, existing opposing orders, available reserves and later market changes can affect live placement.
Are these on-chain liquidity pool funds?
No. The pool is managed within Gatevia's exchange balance and Spot order systems. Funding and fee claims described here are internal Spot balance movements, not blockchain deposits or withdrawals.
Take care: Only commit assets you are prepared to use for trading. Review the market, current order book, pool settings and fee configuration before creating or modifying a pool.
Still have questions?
If you need help with a Spot AMM pool, contact Gatevia support.
Submit a Ticket (Select 'Other')