# Ticks

Ticks are the fundamental unit of accounting within the dex. Each tick is an integer between 352437 and -352437. All tradeable liquidity, in the form of either \`PoolReserves\` or \`LimitOrderTranche\`s is stored at a specific tick.  The price of liquidity being stored at tick is determined by the function:

$$
p(i) = 1.0001^{i}
$$

Some examples:

* Price of tick $$0:$$ $$p(0) = 1.0001^0 = 1$$
* Price of tick $$4000$$ : $$p(4000) = 1.0001^{4000} \approx 1.4917$$​
* Price of tick $$-4000$$ : ​$$p(-4000) = 1.0001^{-4000} \approx 0.6703$$

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More specifically price refers to the rate at which Token1 can be converted to Token0. Logically, the converse rate for converting Token0 to Token1 can be expressed as:

$$
price0To1(i) =  1/1.0001^{i}
$$

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