> For the complete documentation index, see [llms.txt](https://fera-3.gitbook.io/feradotfun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fera-3.gitbook.io/feradotfun/for-liquidity-providers/lp-guide.md). # LP guide: providing liquidity This is the practical guide: how to deposit, how to choose a risk profile, what you earn, what you can lose, and how to withdraw. Read [Risks](/feradotfun/trust-and-safety/risks.md) alongside it. ## 1. Deposit 1. **Pick a pool.** The Earn page lists every pool with its live fee, its fee-yield APR and emissions APR shown *separately* (never blended into one hype number), its TVL, and how its depth compares to competing pools. 2. **Choose your risk profile** (see below). Memecoin pools offer **Active** only; stock-token (RWA) pools offer both **Steady** and **Active**. 3. **Deposit one or both assets.** You can deposit a single asset; the vault swap-assists to the right ratio for the profile you chose. You receive a normal **ERC-20 share token** for that pool and profile. 4. **That's it.** The vault runs the strategy. Your fees auto-compound into your share value; any FERA emissions accrue separately as esFERA (see [Rewards & vesting](/feradotfun/for-liquidity-providers/rewards-and-vesting.md)). There's a short deposit cooldown and a price-sanity check on the way in (this protects existing depositors from a class of manipulation; it's a guard, not a lock-up). ## 2. Steady vs Active: choosing a risk profile Every FERA vault shapes your liquidity into **bands**: ranges of price where your money sits and earns fees. The risk profile decides *which* bands your money is in. The trade-off is always the same: **the more concentrated near the current price, the more fees you capture and the more impermanent loss you take.** | | **Active** | **Steady** | | --------------------- | ----------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------- | | Where your money sits | Weighted toward a near-price band for fee capture, backed by a wide base that holds through big moves | A wide range that stays in-range through swings | | Fee capture | Higher, it sits where most volume trades | Lower, a thinner slice of the fees | | Impermanent loss | Higher, a big price move hits it harder | Lower, the wide range keeps you in-range through swings | | Built for | Yield-seeking capital comfortable with volatility | Conservative capital, e.g. someone LPing a stock token who wants exposure, not a trading desk | | Available on | Memecoin **and** stock-token pools | Stock-token (RWA) pools only | Each profile is its own managed share class with its own value, its own fees, and its own share symbol (`fACT-…` for Active, `fSTD-…` for Steady). You can hold both. You pick one per deposit. > **Why memecoin pools don't offer Steady.** A wide, steady range on a memecoin is barely different from not providing liquidity at all. You'd sit mostly out-of-range and earn almost nothing. The Steady profile ships where it actually fits: the stock-token pools, for the person who wants calm exposure to NVDA or AAPL. ## 3. What you earn Two separate streams, always shown separately: * **Fee yield.** Your share of the swap fees the pool collects, net of the 10% performance fee (below). This is real, on-chain revenue. It varies with volume and volatility. * **Emissions.** FERA tokens (delivered as esFERA), earned *only* by vault depositors. See [Emissions](/feradotfun/tokenomics-and-transparency/emissions-and-tokenomics.md), and note that early emissions are deliberately small because they are capped by protocol revenue. ## 4. Fees vs impermanent loss: the honest version **Impermanent loss (IL) is not a FERA thing. It's a liquidity-provider thing.** Any time the two assets in a pool change price relative to each other, an automated-market-maker position ends up worth less than if you'd just held the two tokens. That's IL. FERA does **not** remove it. Over the same price path, your IL in a FERA pool is the same as in a vanilla pool. What FERA changes is the **other** side of the ledger: **fee capture**. FERA's regime fee collects more on the flow that would otherwise bleed you. The bet is that on volatile and weekend-drift flow, the extra fees more than offset the IL, but this is a bet that depends on your pool seeing real volume, not a guarantee. * On **memecoin** pools, IL is *priced, not fought*: the volatility fee rises as the price moves violently, so IL is compensated by fee income rather than chased with constant repositioning. Your principal isn't churned (see below). * On **stock-token** pools, the tight Steady/Active bands are oracle-anchored and the strategy widens or partially withdraws off-hours to reduce the Monday-gap hit. It reduces IL exposure, it does not eliminate it. There is no market condition where FERA promises you come out ahead. A quiet pool with no volume earns you little, and a sharp adverse move still costs you IL. See [Risks](/feradotfun/trust-and-safety/risks.md#impermanent-loss). ### How the memecoin strategy actually handles your principal FERA does **not** chase a memecoin's price with your principal. Chasing a trending asset is a known way to *lock in* losses: each time you recenter into a move that keeps going, you sell low and buy high. A memecoin trends more than it snaps back, so the strategy is built to **hold, not chase**: * **Your principal sits in a wide base range that scales with volatility.** The more volatile the pair, the wider the base, so it stays in-range through big moves instead of being knocked out of position. It is designed to *not* need constant repositioning, and the higher swap fee on volatile flow is what pays you for the risk of holding through it. * **A narrower band near the current price does the everyday work of capturing fees.** As trading pushes the price around, that band is refilled from the assets already in your position, with **no swap**, so it realizes **no loss** from repositioning. This is the routine rebalancing, and it never disturbs the wide base. * **The base is only re-anchored as a rare, capped safety valve**, never as an active loop. If an extreme, sustained move ever pushes the price out of even the wide base, a re-anchor may happen, but only when strict on-chain conditions hold: the move has persisted, a minimum interval since the last one has elapsed, and the pool's time-weighted price confirms it is real, not a brief wick. Any single re-anchor is also **capped in how much value it can put at risk**, so it can never realize a large loss in one shot. Anyone can trigger it, but no one can override the rules; if the conditions aren't met, the contract reverts. * **Withdrawing never depends on any of this.** Your withdrawal always returns your fair share of whatever the position currently holds, in-kind, even if the price is far out of range and nothing has rebalanced recently. The vault is never locked, and a rebalance is never a prerequisite for getting your money out. Every rebalance and re-anchor is an on-chain action with a justification you can inspect in the pool's strategy log. ## 5. The 10% performance fee: only when you earn FERA makes money **one way**: a **10% performance fee on the swap fees your liquidity collects.** This is immutable (it can never be changed) and it is the *only* fee FERA charges you. * **0% on swaps.** No protocol fee is ever taken from a trade, and no trade is ever blocked. The whole dynamic fee is the liquidity providers'. * **0% on principal.** Deposits, withdrawals, rebalances, compounds, off-hours widens: none touch your principal. * **10% of collected fees, and nothing when there are none.** When the vault collects fees, exactly 10% is skimmed. If your position collects no fees, FERA takes nothing. Every APR shown on the site is already net of this fee. > **The honest caveat.** Because the 10% skim raises your break-even, a FERA pool has to charge a bit more than a vanilla pool to beat it, above \~33.3 bps. That's exactly why the memecoin fee floor is set to **0.34%**: it clears the hurdle even at the floor. FERA also won't deploy the memecoin fee regime on pairs with no volatility, because a quiet pool wouldn't clear it. Where does the 10% go? It's real revenue, split immutably **50% to stakers / 25% to treasury / 25% to ops**. That's a different split from emissions, so don't confuse the two. See [Emissions](/feradotfun/tokenomics-and-transparency/emissions-and-tokenomics.md) and [Rewards & vesting](/feradotfun/for-liquidity-providers/rewards-and-vesting.md). ## 6. Withdraw You can withdraw any time. **Withdrawals are never pausable and never blocked.** This is a hard on-chain invariant. Your principal is returned in full. Any pending esFERA keeps vesting; withdrawing your shares does not forfeit it. ### The early-exit window There is one thing to know about *timing*. To stop bots from sniping the exact high-fee moments FERA creates (adding liquidity right before a big fee and yanking it right after), there's a short **fee-forfeiture window** after each deposit: * **Memecoin pools: 30 minutes. Stock-token pools: 10 minutes.** * If you withdraw *inside* the window, you forfeit the swap fees that position accrued during it. The penalty **decays linearly to zero** across the window. The longer you wait, the less is at risk, and it hits zero at the end. * **It never touches your principal, and it never blocks the withdrawal.** You can always leave; you'd just leave some accrued fees behind. * Forfeited fees are **donated to the liquidity providers still in range**, which means the flip-side is in your favour too: when *other* people bail early, their forfeited fees are paid to you while you stay put. The Withdraw screen shows you, live, exactly how much you'd forfeit right now and counts down to when the penalty hits zero, so you can never trip over it by accident. If you're past the window, it says so and you keep 100% of your fees. ## 7. LP directly vs the vault (open liquidity) Anyone can provide liquidity to a FERA pool **directly**. The hook is permissionless, you pick your own range, you have full manual control, and you earn swap fees. What you *don't* get by LPing directly is **FERA emissions**. Those accrue only to vault share holders. The vault is the managed, one-click, emissions-eligible door. **Straight talk:** a skilled liquidity provider hand-managing a tight range can capture more fees per dollar than the vault's managed strategy. We do **not** market the vault as higher-yield. It's the managed, emissions-eligible, passive option, and the sophisticated providers who LP directly deepen the same pool for everyone. Choose the vault for management and emissions; choose direct if you want to run your own range and don't need the token. *** Next: [How the dynamic fee works →](/feradotfun/for-liquidity-providers/how-fees-work.md) · [Rewards & vesting →](/feradotfun/for-liquidity-providers/rewards-and-vesting.md) · [Risks →](/feradotfun/trust-and-safety/risks.md) --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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. 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