> For the complete documentation index, see [llms.txt](https://docs.lexer.markets/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lexer.markets/trading/liquidity-provision.md). # Liquidity Provision Liquidity provision plays a vital role in the Lexer ecosystem since it sets the cap of the total open interest and acts as the counterparty to traders. In return, these **liquidity providers are rewarded with 70% of the trading fee in addition to any potential trader losses.** As Lexer has its unique [Hybrid Liquidity Engine](/innovations-and-mechanism/hybrid-liquidity-engine.md), LPs can choose which engine to provide the liquidity to through the [Smart Router](/innovations-and-mechanism/smart-router.md). For the multi-asset LP engines (CoreCrypto & Arbi), liquidity provision is similar to a blue-chip crypto index with a share of the trading fees and exposure to trader PnL. For the Synthetic LP engine, there is no volatile asset risk as it utilizes stables only, and it also receives a share of the trading fees and exposure to trader PnL. **Fee revenue and exposure to trader PnL are "engine dependent", so providing for one engine will isolate the risk and rewards to the trading from that particular engine.** --- # 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. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.lexer.markets/trading/liquidity-provision.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.