No — there are no liquidations in Uniswap v3. If the price goes outside of your LP position price range, then your position will be singularly concentrated in the less valuable asset. As an example, if you a price range of 1,000 — 5,000 for ETH/USDC and ETH falls to 900, then your balance will be entirely concentrated in ETH. Conversely, if ETH appreciates to 6,000, then your balance will be entirely concentrated in USDC.

While the price remains outside of your price range, your position will be "inactive". This means your position will not earn fees until if and when the price comes back in range.

For a visual explanation, watch this visualization.

Did this answer your question?