# Definitions

* **Bin**: A discrete price range where liquidity can be deposited. Each bin represents a specific price point with a defined width.
* **Bin Step**: The percentage difference between consecutive bins (e.g., 1 basis point = 0.01%).
* **Active Bin**: The bin containing the current market price where swaps are occurring.
* **Liquidity Provider (LP)**: User who deposits tokens into one or more bins.
* **Position**: Collection of LP tokens across multiple bins belonging to a single user.
* **Composition Fees**: Trading fees distributed based on bin activity and liquidity.
* **Volatility Accumulator**: Metric tracking market volatility to adjust dynamic fees.