# FAQ for LPs

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**Note for DEX Teams:**

This section addresses the most common questions liquidity providers may have while using your Algebra-powered DEX. From how yields are generated to managing out-of-range positions, these answers help users better understand their role and returns in a concentrated liquidity environment. 

**Tailor the section to reflect your specific UI, pool configurations, and reward mechanics.**
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<summary>Where does my yield come from?</summary>

Your total return is a combination of **(a) swap fees**—paid by traders on every swap—and **(b) farming or incentive rewards** (when a farming campaign is active). Both sources are automatically added to your position’s pending fees.

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<summary>How are fees earned and distributed?</summary>

Every time a swap occurs in a pool, a fee is charged and **proportionally distributed to active liquidity providers**—those whose liquidity is within the current trading price range. You can collect fees by clicking **“Claim Fees”** button in your position tab.

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<summary>Where can I see and manage my position?</summary>

Go to the **“Pools”** page and open the **“My Pools”** tab. There you’ll find each active (or inactive) position, its current value, price range, and unclaimed fees.

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<summary>Can I provide liquidity across the full price range?</summary>

Yes. Select **“Full Range”** when creating a position. Full‑range LPs earn lower APR than narrow‑range LPs, but they rarely fall out of range and require minimal upkeep.

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<summary>How do I add full‑range liquidity?</summary>

When setting your price range, click the **“Full Range”** button; the interface will auto‑fill the widest possible range (0 → ∞). Confirm the deposit as usual.

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<summary>Can I create a new liquidity pool?</summary>

If the token pair doesn't exist yet, you can create a new pool by clicking **“Create Pool”** button in the “Pools” tab.

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<summary>Can I withdraw my liquidity (redeem my LP tokens)?</summary>

Yes. You can **redeem your LP tokens** at any time to withdraw your share of the pool, including your portion of the fees and any earned rewards.

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<summary>What happens if the market price moves outside my range?</summary>

Your liquidity becomes inactive and concentrated in one asset. You won’t earn trading fees until the price re-enters your specified range. Your options:\
• **Wait** until the price returns.\
• **Adjust** your position by removing and re-adding liquidity with a new range.\
• **Exit** and redeploy elsewhere. Narrow ranges offer higher potential fees but require more monitoring; wider ranges are safer but yield less.

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