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    • How to Set Up Scroll Wallet
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  • 1️⃣V1 guide
    • How to Swap
    • How to Add Liquidity
    • How to Create a Liquidity
  • 2️⃣V2 guide
    • How to migrate liquidity from Zebra v1 to v2
    • 🎯V2 Liquidity Guidelines
      • How to add a liquidity
      • How to remove liquidity from V1
      • 🚀Getting started with V2
        • Why is liquidity position ownership represented by tokens or NFTs?
        • How to collect fees from a liquidity pool on Zebra v2
  • ❓Q&A
    • Do I get "liquidated" if the price goes outside of my range?
    • Why is my liquidity position not evenly split between the two tokens?
    • How to change the price range of a liquidity position
    • Why does the price input automatically round?
    • What are fee tiers?
    • What is a liquidity provider (LP) fee?
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  1. Q&A

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.

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Last updated 1 year ago

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