# Providing Liquidity

When you add your token to a liquidity pool, you will receive Liquidity Pool (LP) tokens.

As an example, if you deposit **CANDY** and **CRO** into a liquidity pool, you would receive **CANDY-CRO LP** tokens.

The number of LP tokens you receive represents your portion of the **CANDY-CRO** liquidity pool.

You can remove your liquidity anytime. Be ware of impermanent loss.

Liquidity providers earn trading fees. For example, whenever someone trades any token, he pays a 0.15% fee, of which 0.10% is added to the liquidity pool of the swap pair they traded on.

For example:

* 10 LP tokens are representing 10 CANDY and 10 CRO tokens.
* 1 LP token = 1 CANDY + 1 CRO
* Someone trades 10 CANDY for 10 CRO
* Someone else trades 10 CRO for 10 CANDY .
* The CANDY/CRO liquidity pool now has 10.015 CANDY and 10.015 CRO.
* Each LP token is now worth 1.00015 CANDY + 1.00015 CRO.


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