Skip to content
ARRANGEDocumentation
Browse documentation
On this page

DocumentationResearch Foundations

RMM Liquidity

Reserve funding, inventory paths and LP exposure.

#Liquidity-provider role

An RMM liquidity provider funds the reserves from which the target payoff is formed. LP shares are claims on evolving inventory, not passive deposits.

#Liquidity dimensions

DimensionEffect
Reserve depthControls size and price impact
Inventory pathDetermines assets held as state changes
Fee levelBalances compensation against alignment friction
ConcentrationImproves local depth while increasing boundary risk
Entry and exitCan transfer value between LP cohorts if mispriced
ExpiryRequires treatment of residual reserves and claims

#Separate user and LP exposure

The end-user covered-call payoff and the LP inventory payoff are different claims. Fees, replication error and loss modes must be measured separately.

  1. Primitive rmms-py

    Open-source Python simulation toolkit for covered-call RMM behavior, arbitrage and fee experiments.

  2. Primitive Portfolio

    Open-source automated market-making protocol repository and a useful part of the research lineage; it is not an ARRANGE dependency or deployment.

ARRANGE Documentation