> ## Documentation Index
> Fetch the complete documentation index at: https://docs.momentrates.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Recursive

> Quote both sides of a maturity and earn the spread every time trades go back and forth.

Recursive liquidity puts in **both sides** of a maturity at once: a bid and an ask around the market. It keeps quoting after every fill, and you earn the gap between the two rates each time trades go one way and back.

![A bid below the market rate and an ask above it; a fill one way and then back earns the spread](https://mintcdn.com/moment-0fa29e7e/5c4BULtyWxFid-gy/images/recursive-spread.webp?fit=max\&auto=format\&n=5c4BULtyWxFid-gy\&q=85\&s=0f35ed1fdef1ba555ae72294c8a596b6)

Bid below, ask above. A round trip earns the gap.

## Limit or Recursive?

| | Limit bid / ask | Recursive |
| - | - | - |
| Sides | One | Both |
| Fills | Once | Over and over |
| You earn | Your chosen rate | The spread on each round trip |
| Best for | Getting one rate you like | Market making |

## Add

![Recursive add: principal 4 and interest 1.44 leave the TimeBalance and appear in the bin lane, and LP tokens appear](https://mintcdn.com/moment-0fa29e7e/5c4BULtyWxFid-gy/images/recursive-add.webp?fit=max\&auto=format\&n=5c4BULtyWxFid-gy\&q=85\&s=c4bd2b54faf1ab19e31d61e15814ea2e)

Both sides move from your TimeBalance (red) into the bin (green).

1. Open **Recursive** in the top bar and pick a market.
2. Pick **Add**, then **TimeBalance** or **sUSDS**.
3. Pick a **Maturity**, for example **Oct 17**.
4. Set **Your rates**: a **Bid** and an **Ask**. The **Spread** shows how far apart they are, for example ×1.0410 (the ask is the bid × 1.0410, so a 5.00% bid gives a 5.21% ask), within the allowed range (for example ×1.0065 – ×1.1300).
5. Type the **Principal** (for example 4, Oct 2 → Oct 17). The **Interest** fills in by itself, because the bin sets the ratio ("Interest = 0.36 × principal · set by the bin").
6. **You receive** shows your LP tokens. The badge reads "×1.0410 Spread · Fills often".
7. **Review → Confirm**, then sign.

In an empty bin, you are first: your rates set the first price, and you can add only one side if you like.

Paying with sUSDS: the shares turn into a flat TimeBalance first. The bin takes what it needs; the rest stays in your TimeBalance.

## While it runs

The chart's middle lane reads **Your share of the pool**. As traders fill one side, your share leans toward the other side. When they come back, you earn the spread. Your LP tokens grow as the bin earns, and sync on their own clock (**LP synced**).

At the maturity, the bin stops quoting. Its interest side becomes plain TimeBalance and keeps earning. Its principal side has run its course: it earned the vault's yield over its period, and nothing of it is left. Nothing to do on the day.

## Remove

![Recursive remove: LP tokens and both bin sides go down, and principal and interest return to the TimeBalance](https://mintcdn.com/moment-0fa29e7e/5c4BULtyWxFid-gy/images/recursive-remove.webp?fit=max\&auto=format\&n=5c4BULtyWxFid-gy\&q=85\&s=90db2ee24702b21c76a9a2e82dc8852a)

LP tokens and your bin share shrink (red). Both sides come back to your TimeBalance (green).

1. Pick **Remove**. **Your positions** lists each maturity with your LP and its bid / ask.
2. Pick one, for example **Oct 17 · 2.95 LP**.
3. Choose how much: 25% / 50% / 75% / Max.
4. **You receive · into your TimeBalance** shows both parts, for example **Principal ≈ 1.60** (Oct 2 → Oct 17) and **Interest ≈ 0.58** (from Oct 17).
5. **Review → Confirm**, then sign.

You get your share as the bin holds it right now, so after recent fills it may lean to one side.

## Fees and risks

Makers pay nothing; you keep the full spread. The main risk is that traders fill one side and rates never come back before the maturity, leaving you on that side. See [Risks and security](https://docs.momentrates.xyz/good-to-know/risks-and-security.md).


## Related topics

- [Liquidity mechanics](https://docs.momentrates.xyz/for-builders/liquidity-mechanics.md)
- [Strategy maths](https://docs.momentrates.xyz/for-builders/strategy-maths.md)
- [FAQ](https://docs.momentrates.xyz/good-to-know/faq.md)
- [Contracts and parameters](https://docs.momentrates.xyz/for-builders/contracts-and-parameters.md)
- [Fees](https://docs.momentrates.xyz/good-to-know/fees.md)


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