# Liquidity Pools Liquidity pools allow you to provide liquidity by adding your tokens to liquidity pools. When you add your token to a liquidity pool, you will receive Liquidity Pool (LP) tokens called BOW-LP. As an example, if you deposited **BOW** and **CORE** into a liquidity pool, you would receive **BOW-CORE LP** tokens. The number of LP tokens you receive represents your portion of the BOW-CORE liquidity pool. You can also redeem your funds at any time by removing your liquidity. Providing liquidity is not without risk, as you may be exposed to impermanent loss. It’s not all bad for liquidity providers as you will also be given a reward in the form of trading fees. For example, whenever someone trades ArcherSwap, the trader pays a 0.2% 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 BOW and 10 CORE tokens. * 1 LP token = 1 BOW + 1 CORE * Someone trades 10 BOW for 10 CORE * Someone else trades 10 CORE for 10 BOW. * The BOW/CORE liquidity pool now has 10.010 BOW and 10.010 CORE. * Each LP token is now worth 1.00010 BOW+ 1.00010 CORE. 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 Yield Farms while still earning your 0.10% trading fee reward. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.archerswap.finance/products-and-features-guide/exchange/liquidity-pools.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.