> For the complete documentation index, see [llms.txt](https://zebra.gitbook.io/zebra-document/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://zebra.gitbook.io/zebra-document/q-and-a/what-is-a-liquidity-provider-lp-fee.md).

# What is a liquidity provider (LP) fee?

**A Liquidity Provider (LP) fee is applied to all swaps when using the Zebra Protocol.**

 

The LP fee is taken from the input token.

 

The liquidity provider fees are distributed to liquidity providers as a reward for supplying tokens to the liquidity pool.

 

The liquidity provider fee is paid proportionally to all liquidity providers who have an active liquidity position. Liquidity providers who have a position outside of the price range at that moment will not earn fees.

 

Liquidity provider fees are paid entirely to the liquidity providers.