# cAMMs While traditional AMMs base prices on the ratio of tokens held in two pools, cAMMs dynamically harness liquidity just before trade execution. This not only ensures better capital efficiency but also means trades are more responsive to real-time conditions. ## How cAMMs Work When a trade is initiated, the cAMM aggregates resources from all LPs' comets based on the liquidity they've committed to the designated pool. In essence, it's akin to conjuring an AMM just-in-time, tailored for the trade at hand. The liquidity is activated at the oracle price at the time of the trade and is shifted based on the collective surplus or debt of clAssets held by LPs. cAMMs underscore Clone's commitment to innovating within the decentralized trading landscape. By reimagining liquidity provision and pricing, cAMMs offer traders a more flexible and efficient environment, make it easier for LPs to maintain efficient comet positions, and cement Clone's place at the forefront of decentralized trading solutions. --- # 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.clone.so/system-architecture/comet-liquidity-system/camms.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.