> ## Documentation Index > Fetch the complete documentation index at: https://docs.uzolabs.xyz/llms.txt > Use this file to discover all available pages before exploring further. # Provide V3 liquidity > Understand concentrated liquidity on BDEX V3 and where to find full position management docs. This page explains how liquidity works on BDEX V3, how it differs from V2, and where to go to manage a position. ## Concentrated liquidity In a V2 pool, your liquidity covers every possible price. Most of it sits at prices the pool never reaches, so it earns little. In a V3 pool, you choose a price range. Your tokens only trade while the price is inside it. The same deposit earns a larger share of fees, because it's concentrated where trading happens. The tradeoffs: * **Out of range, you earn nothing.** If the price leaves your range, your position becomes 100% one token and stops earning until the price comes back or you move it. * **You manage it.** A narrow range earns more but goes out of range more often. * **Each pool has a fee tier.** BDEX V3 pools charge 0.05%, 0.30% or 1.00%, and the same pair can have a pool on each tier. ## Positions are NFTs V3 positions aren't fungible, because each one has its own range. The NonfungiblePositionManager mints each position as an NFT. You use it to: * `mint` a new position with a pool, a tick range and amounts of both tokens, * `increaseLiquidity` and `decreaseLiquidity` on an existing position, * `collect` the fees and withdrawn tokens, * `burn` the NFT once the position is empty. Withdrawing is two steps: `decreaseLiquidity` moves the tokens into the position's owed balance, and `collect` sends them to you. The NonfungiblePositionManager is at `0xDAc3FcFF004d8a8675b94E44941A1a2e3b240090` on both mainnet and testnet. See [Contract addresses](/reference/contract-addresses). ## Ticks and ranges Prices in V3 are expressed as ticks. Each pool only accepts ticks that are a multiple of its tick spacing, which depends on the fee tier. Picking a range means converting the prices you want into valid ticks for that pool. Libraries such as the Uniswap V3 SDK do this math, and BDEX V3 uses the same model. ## Manage positions For full instructions on minting, adjusting and closing positions, see BOT Chain's [DEX documentation](https://dev-docs.botchain.ai/docs/DEX). To list pools and check their liquidity before you choose one, use the [BDEX API](/reference/bdex-api). ## V2 or V3 | | V2 | V3 | | - | - | - | | Range | All prices | One range you pick | | Position | Fungible LP token | NFT | | Fees | Added to the pool automatically | Collected with `collect` | | Upkeep | None | Watch the range | If you want to provide liquidity without watching it, start with [V2 liquidity](/guides/defi/liquidity/v2). ## Next steps Add and remove liquidity with a script. See how V3 pools quote. This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.