Skip to main content

Pool Health Score (Liquidity Ratio)

The Pool Health Score is one of the most important metric for evaluating the safety of a new token launch.

It answers the critical question:
"How easy is it to crash the price of this token?"

🔍 Understanding the Metric​

1. What is it?

Technically known as the Liquidity-to-Market-Cap Ratio, this percentage compares the amount of real money (KTA) in the liquidity pool against the total value of all tokens in existence (Market Cap).

  • Total Liquidity: The actual KTA + Tokens locked in the trading pool.
  • Market Cap: The theoretical value of all tokens if sold at the current price.

2. Why it Matters

Imagine a token with a 10 Million KTA Market Cap but only 1,000 KTA in Liquidity.

The Danger Scenario:

If a user sells just 500 KTA worth of tokens, the price crashes by ~50% immediately.

The "Health Score" exposes this danger instantly. A low score means the price is fragile; a high score means the price is robust.

📊 Stability Stages & Risk Levels​

This table defines the health stages of a Launchpad pool based on its ratio.

Health ScoreStatusDescription for Investors
< 5%🚨 Critical

Extremely Thin Liquidity. The pool is extremely thin. A single small sell can crash the price by 50% or more. Highly dangerous.

5% - 10%🔴 Low

Speculative / volatile. The team likely keeps a percentage of the raised funds. Expect double-digit price swings & check tokenomics.

10% - 20%🟡 Medium

Standard / Healthy. Typical launch ratio. Sufficient liquidity to absorb normal trading activity without collapse.

20% - 50%🟢 Good

Very Stable. The team locked a significant portion of the raise. Takes substantial sell pressure to move the price down.

> 50%🛡️ High

Unshakeable. Extremely hard to manipulate. Usually indicates a fair launch where almost 100% of raised funds went to liquidity.

How It Is Calculated​

The score is derived directly from the Team Split setting chosen by the creator.

Scenario A: High Risk

Team Split: 90%

The team pockets 90% of the raised KTA. Only 10% goes to the pool.

Result: Low Health Score 📉

Scenario B: High Safety

Team Split: 20%

The team pockets only 20%. The remaining 80% backs the token in the pool.

Result: High Health Score 📈

💡 User Guidance​

When viewing a Preview or Token Details page, use this simple rule of thumb:

✅ Look for Green

A score above 20% is a strong indicator of a safer, longer-term project.

⚠️ Beware of Red

A score below 10% suggests the creator is prioritizing short-term profit over token stability.