# CLMM Magma Finance's Concentrated Liquidity Market Maker (CLMM) is a capital-efficient Automated Market Maker (AMM) that allows liquidity providers (LPs) to concentrate their liquidity within specific price ranges. This approach offers greater control over capital deployment and has the potential to generate higher fees for LPs from a given amount of liquidity. Unlike traditional AMMs where liquidity is distributed evenly along the entire price curve (from zero to infinity), CLMMs allow LPs to allocate their funds to the price ranges where they believe most trading activity will occur. This concentration of liquidity leads to a more efficient use of capital and can result in deeper liquidity for traders at specific price points. Key features of Magma's CLMM include: * **Concentrated Liquidity:** LPs can provide liquidity in custom price ranges, leading to higher capital efficiency. * **Flexible Fee Tiers:** Multiple fee tiers allow LPs to be appropriately compensated for taking on varying degrees of risk. * **Fungible Liquidity Positions:** LP positions are represented by NFTs, which can be traded and transferred. This section of the documentation will delve into the core concepts of our CLMM, guide you on how to provide liquidity, and explain the fee structures. --- # 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://magma-finance-1.gitbook.io/magma-finance/product/clmm.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.