> For the complete documentation index, see [llms.txt](https://docs.unlimited.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.unlimited.trade/protocol/or-liquidity-pools.md).

# 🌊 | Liquidity Pools

Liquidity Pools are collections of tokens which have been <mark style="color:blue;">**locked by smart contracts**</mark> at the request of their holders.

On Unlimited Leverage, liquidity pools are used in a **trustless bankroll model**, rather than to provide trade liquidity. **This means**:

* Pools <mark style="color:blue;">**earn a percentage**</mark> of the fees accrued
* Pools are used to <mark style="color:blue;">**pay out the profits**</mark> of profitable trades

This is a well-established model within both the DeFi and cryptocurrency gambling ecosystems.&#x20;

As a result, the amount you earn as a liquidity provider is **based on the fees earned** <mark style="color:blue;">**combined**</mark> with **the overall profit & loss of the traders** using the relevant trading pair.&#x20;

### For more <mark style="color:blue;">information</mark> see:

{% content-ref url="/pages/yOyAfHXX2Y66FFgfmJ0i" %}
[Pools](/protocol/or-liquidity-pools/pools.md)
{% endcontent-ref %}

{% content-ref url="/pages/iBmMmIx4hJx8t8HBv5gk" %}
[Lock-up Periods](/protocol/or-liquidity-pools/lock-up-periods.md)
{% endcontent-ref %}

{% hint style="info" %}
**Please note**, providing liquidity can entail a risk of unrealised loss in assets if trader profitability exceeds the fees earned by a pool. &#x20;
{% endhint %}