How it works?

When you provide liquidity on Liqfinity, your funds are committed for an unlimited period of time. For example, if you provide $100,000 in liquidity, these funds are locked, and you begin earning rewards immediately. Here are a few important rules to keep in mind:

• Unlocking: You have the flexibility to unlock your funds at any time. However, if you choose to unlock before the rewards you’ve earned equal the amount you initially contributed (e.g., $100,000), you will only receive back the principal amount you locked, without any income generated so far. Additionally, if you unlock early, the unearned rewards are redistributed to other liquidity providers, ensuring the system remains balanced and fair.

• Unlock Period: Once you request to unlock your funds, there is a 7-day unlocking period. This waiting period ensures the platform has sufficient time to adjust and maintain liquidity stability.

For example, if you decide to unlock your funds when the income generated from your liquidity providing period is 99% of your initial contribution rather than 100%, you will still receive your full principal amount back.

However, all the income generated up to that point will be redistributed to reward other active contributors in the platform’s liquidity pool. This ensures that liquidity providers who remain committed continue to benefit from the system.