> For the complete documentation index, see [llms.txt](https://onex-3.gitbook.io/onex-document/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://onex-3.gitbook.io/onex-document/coin/pillar-03-ale.md).

# Pillar 03 ale

## Core Concept

ALE dynamically manages liquidity pool depth to ensure sell pressure never overwhelms available liquidity. It automatically adjusts concentrated liquidity positions based on real-time market conditions using Uniswap V3-style tick management.

## Minimum Liquidity Depth Formula

```
Min_Liquidity_USDT = Circulating_Supply × Current_Price × 15%
```

## Concentrated Liquidity Band Allocation

| Price Band                    | Liquidity % |
| ----------------------------- | ----------: |
| ±2% of current price (core)   |         40% |
| -5% to -2% (support zone)     |         25% |
| +2% to +5% (resistance zone)  |         15% |
| -10% to -5% (deep support)    |         15% |
| +5% to +15% (extended upside) |          5% |

**Rebalancing:** Every 15 seconds if price moved >1% since last rebalance.

## Emergency Response Thresholds

| Trigger             | Response                                |
| ------------------- | --------------------------------------- |
| Price drops >3%/1hr | Deploy extra USDT = Daily\_Volume × 5%  |
| Price drops >5%/1hr | Deploy extra USDT = Daily\_Volume × 10% |

## Multi-Pool Distribution

| Pool      | Allocation |
| --------- | ---------: |
| ONEx/USDT |        50% |
| ONEx/USDC |        25% |
| ONEx/ETH  |        15% |
| ONEx/BNB  |        10% |

## Protocol-Owned Liquidity (POL)

The **75M ONEx allocation (15%)** is permanently protocol-owned. **CANNOT be withdrawn by team or any single actor.** This is enforced at the smart contract level — no admin key can remove this liquidity.

This provides a permanent liquidity floor that cannot be gamed by LP withdrawals during market stress.