🌊 | Liquidity Pools

Liquidity Pools are collections of tokens which have been locked by smart contracts 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 earn a percentage of the fees accrued

• Pools are used to pay out the profits of profitable trades

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

As a result, the amount you earn as a liquidity provider is based on the fees earned combined with the overall profit & loss of the traders using the relevant trading pair.

For more information see:

PoolsLock-up Periods

Please note, providing liquidity can entail a risk of unrealised loss in assets if trader profitability exceeds the fees earned by a pool.