# Liquidity Pools By participating in **liquidity pools**, you have the opportunity to contribute your tokens and provide liquidity. When you add your tokens to a liquidity pool, you receive Liquidity Pool (LP) tokens in return. As an example, if you deposited **FAX** and **USDT** into a liquidity pool, you would receive **FAX-USDT LP** tokens. The number of LP tokens you receive represents your portion of the FAX-USDT liquidity pool. You can also redeem your funds at any time by removing your liquidity. Providing liquidity is not without risk, as you may be exposed to impermanent loss❗️ It’s not all bad for liquidity providers as you will also be given a reward in the form of trading fees. > For example, whenever someone trades FAX, the trader pays a 0.3% fee, of which 0.15% is added to the liquidity pool of the swap pair they traded on. --- # 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://famswaps-organization.gitbook.io/famswapgen-ying-wen-ban/products/exchange/liquidity-pools.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.