Remove Liquidity Overview

Understand how to withdraw liquidity from DLMM positions, collect accumulated fees, and manage partial or complete exits from pools.

What is Removing Liquidity?

In DLMM, removing liquidity means:

  • Withdrawing tokens from specific bins

  • Collecting accumulated trading fees

  • Reducing or closing your position

  • Receiving tokens based on current bin reserves

Core Concepts

Partial vs Complete Removal

  • Partial: Remove from selected bins only

  • Complete: Withdraw all liquidity and fees

  • Close Position: Complete removal + burn NFT

Token Returns

You receive tokens based on:

  • Your share of each bin's reserves

  • Accumulated fees in those bins

  • Current price (may differ from entry)

Fee Collection

  • Fees are automatically included in removal

  • No separate claim transaction needed

  • Proportional to your liquidity share

The Workflow

1. Check Position Status

const bins = await sdk.Position.getPositionBins(pair, positionId);
const amounts = await sdk.Position.getPositionBinsAmount(pair, positionId);

2. Calculate Expected Output

Preview what you'll receive:

// Check each bin's value
amounts.forEach(bin => {
  console.log(`Bin ${bin.id}: ${bin.amountX} X, ${bin.amountY} Y`);
});

3. Execute Removal

Two main options:

  • Remove from specific bins

  • Remove all and close position

Removal Strategies

Range Exit

Remove liquidity outside active range:

Before: ████ ████ ████ ████ ████
After:  ████ ████ [active] 
        (removed)         (removed)

Profit Taking

Remove from bins with accumulated fees:

Fees:   Low  Low  HIGH  Low  Low
Action: Keep Keep REMOVE Keep Keep

Rebalancing

Remove and re-add with new distribution:

  1. Remove from current bins

  2. Calculate new optimal range

  3. Add with updated strategy

What You Receive

For each bin removed:

Your tokens = (Your liquidity / Total liquidity) × (Reserves + Fees)

Example:

  • Your liquidity: 1000

  • Total in bin: 10000

  • Bin reserves: 50000 X, 100000 Y

  • Your share: 10% of everything

Important Considerations

Price Impact

  • Current price may differ from entry

  • Can result in more of one token

  • This is impermanent loss realized

Gas Optimization

  • Removing many bins costs more gas

  • Consider batching operations

  • Complete removal is gas-efficient

Timing

  • No lock periods in DLMM

  • Remove anytime markets are open

  • Consider fee accumulation rates

Common Patterns

Emergency Exit

// Quick complete withdrawal
await sdk.Pair.removeAndClosePosition(pair, positionId);

Selective Removal

// Remove only profitable bins
const profitableBins = bins.filter(b => b.fees > threshold);
await sdk.Pair.removeLiquidity(pair, {
  positionId,
  binIds: profitableBins.map(b => b.id)
});

Fee Harvesting

// Remove and re-add to collect fees
// 1. Remove all
// 2. Add back immediately

Next Steps

Choose your removal approach:

  1. Partial Removal: Remove from Specific Bins

  2. Complete Exit: Remove All Liquidity

  3. Preview First: Calculate Output Amounts

Related Topics

PreviousRemove LiquidityNextRemove from Specific Bins

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