Clarify Ratio and Price terms, especially wrt decimals

mangrovedao · Jan 10, 2024 · a15a2ca · a15a2ca
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diff --git a/docs/developers/terms/price.md b/docs/developers/terms/price.md
@@ -19,5 +19,13 @@ Thus, a _price_ corresponds the $wants/gives$ %%ratio|ratio%% of an offer in the
 On a WETH/DAI market, prices are expressed in DAI per WETH (DAI/WETH), eg. 2,224 DAI/WETH.
 :::
 
+:::warning Beware decimals!
+As always when dealing with ERC-20 tokens, care must be taken to handle decimals appropriately.
+
+Just as for token *amounts*, ratios and prices have both raw and user representations.
+
+See the [Ticks, ratios, and prices](../contracts/technical-references/tick-ratio.md) page for a detailed explanation, including formulae for converting between these representations.
+:::
+
 ## References
 * Technical reference for [ticks, ratios, and prices](../contracts/technical-references/tick-ratio.md)
diff --git a/docs/developers/terms/ratio.md b/docs/developers/terms/ratio.md
@@ -4,7 +4,7 @@ title: Ratio
 hoverText: The ratio $wants/gives$ between the amount $gives$ promised by an offer and the amount $wants$ it requests.
 ---
 
-The _ratio_ $wants/gives$ between the amount $gives$ promised by an offer and the amount $wants$ it requests. The unit of ratios on an %%offer list|offer-list%% `outbound_tkn-inbound_tkn` is thus `inbound_tkn/outbound_tkn`.
+The _ratio_ `inbound_tkn_amount/outbound_tkn_amount` between the amount `outbound_tkn_amount` promised by an offer and the amount `inbound_tkn_amount` it requests. The unit of ratios on an %%offer list|offer-list%% `outbound_tkn-inbound_tkn` is thus `inbound_tkn/outbound_tkn`.
 
 A ratio corresponds to a %%price|price%% in the follow way:
 
@@ -21,6 +21,14 @@ On a WETH/DAI market:
     * Eg. 0.0004496 WETH/DAI
 :::
 
+:::warning Beware decimals!
+As always when dealing with ERC-20 tokens, care must be taken to handle decimals appropriately.
+
+Just as for token *amounts*, ratios and prices have both raw and user representations.
+
+See the [Ticks, ratios, and prices](../contracts/technical-references/tick-ratio.md) page for a detailed explanation, including formulae for converting between these representations.
+:::
+
 
 ## References
 * Technical reference for [ticks, ratios, and prices](../contracts/technical-references/tick-ratio.md)