# 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.**&#x20;

As Lexer has its unique [Hybrid Liquidity Engine](https://docs.lexer.markets/innovations-and-mechanism/hybrid-liquidity-engine), LPs can choose which engine to provide the liquidity to through the [Smart Router](https://docs.lexer.markets/innovations-and-mechanism/smart-router).&#x20;

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.&#x20;

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.**&#x20;