> For the complete documentation index, see [llms.txt](https://rissotto.gitbook.io/rissottofinance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://rissotto.gitbook.io/rissottofinance/products/exchange/liquidity-pools.md).

# Liquidity Pools

This is where you get LP Tokens and earn Fees!

When you add your token to a Liquidity Pool you will receive Liquidity Provider (LP) tokens and share in the fees.

## LP Tokens

As an example, if you deposited **Rissotto** and **BNB** into a Liquidity Pool, you'd receive **RSOT-BNB LP** tokens.

The number of LP tokens you receive represents your portion of the RSOT-BNB Liquidity Pool. 

You can also redeem your funds at any time by removing your liquidity.

![](broken://files/-MYdezVThmhitREO6z6V)

## Liquidity Providers earn trading fees

Providing liquidity gives you a reward in the form of trading fees when people use your liquidity pool. 

Whenever someone trades on rissot.to, the trader pays a X,XX% fee, **of which X.XX%** is added to the Liquidity Pool of the swap pair they traded on.

For example:

* There are 10 LP tokens representing 10 RSOT and 10 BNB tokens.
* 1 LP token = 1 RSOT + 1 BNB
* Someone trades 10 RSOT for 10 BNB.
* Someone else trades 10 BNB for 10 RSOT.
* The RSOT/BNB liquidity pool now has 10.017 RSOT and 10.017 BNB.
* Each LP token is now worth 1.00017 RSOT + 1.00017 BNB.

To make being a liquidity provider even more worth your while, you can also put your LP tokens to work whipping up some fresh yield on the [RSOT Farms](/rissottofinance/products/yield-farming.md), while still earning your X.XX% trading fee reward.

## Impermanent Loss

Providing liquidity is not without risk, as you may be exposed to [impermanent loss](https://academy.binance.com/en/articles/impermanent-loss-explained).