# Spread ## 1. Spread in indexed tokens (i.e BTC, ETH) Spread refers to the range of difference between max and min prices for an asset. In DeFi, this is related to the possible variance of price from the prices quoted by our oracle source. ## 2. Spread in stablecoin (i.e USDC, USDT) To avoid unnecessary spread and slippage on stablecoins, Fulcrom applied a mechanism to maintain stablecoin swap price at 1 usd when executing positions. For example, if the USDC price is close to $1, you will be opening position with rate at usdc = $1 However, to ensure trades are aligned with market situations, Fulcrom will also apply the spread mechanism onto stablecoins, same as the indexed tokens. When stables’ market price deviates from $1 (i.e. >1%), spread mechanism will be applied on Fulcrom, transactions involving stables will follow market prices with spread. ## Understanding prices on Fulcrom * Entry price in long positions = max price * Entry price in short position = min price ## Understanding liquidation process on Fulcrom * Long position: Liquidation will happened when market reaching the Min price * Short position: Liquidation will happened when market reaching the Max price {% hint style="info" %} Slippage may occur when opening positions. {% endhint %} --- # 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://docs.fulcrom.finance/fulcrom-finance/about-fulcrom/spread.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.