> For the complete documentation index, see [llms.txt](https://guide.dem.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guide.dem.exchange/community/glossary/perpetual-pool.md). # Perpetual Pool A Perpetual Pool refers to a liquidity pool designed to support and market-make in perpetual markets. Unlike traditional markets with fixed expirations, perpetual markets operate continuously. The Perpetual Pool employs an Automated Market Maker (AMM) to automatically quote prices in these perpetual markets, using deposited funds to place bids and asks on the order book. This mechanism facilitates seamless trading, allowing users to enter or exit positions swiftly with minimal spread. The Quoting Strategy within a Perpetual Pool involves configuring how the AMM operates in each market. This includes parameters like marketId, quoting mode, maximum liquidity utilization (maxLiquidityRatio), and the structure of quotes (quoteShape). These settings dictate the adaptive quoting of prices and quantities, ensuring responsiveness to market dynamics. Derived from the Quoting Strategy, the Quote Price and Quantity calculations determine the actual levels at which prices and quantities are quoted on the order book. The price for each quote is influenced by the previousPrice, adjusted based on specific attributes in the quoting strategy. Simultaneously, the quote quantity takes into account available balance, maxLiquidityRatio, position size, and quoteAmountRatio, resulting in a flexible and dynamic quoting system. Efficiency is a hallmark of Perpetual Pools, demonstrating effective Capital and Liquidity Efficiency. Utilizing an AMM that quotes prices across multiple perpetual markets, these pools optimize the allocation of liquidity. This not only enhances capital utilization but also provides ample opportunities for liquidity providers to earn yields in a continuous trading environment. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://guide.dem.exchange/community/glossary/perpetual-pool.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. 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.