# Liquidity Pools

As an example, if you deposited **HOPE** and GDCC into a Liquidity Pool, you'd receive **HOPE-GDCC LP** tokens.

The number of LP tokens you receive represents your portion of the HOPE-GDCC Liquidity Pool. 

You can also redeem your funds at any time by removing your liquidity.

## Liquidity Providers earn trading fees

Providing liquidity gives you a reward in the form of trading fees when people use your liquidity pool. 

Whenever someone trades on Hopium, the trader pays a 0.25% fee, **of which 0.10%** is added to the Liquidity Pool of the swap pair they traded on.

For example:

* There are 10 LP tokens representing 10 Hope and 10 GDCC tokens.
* 1 LP token = 1 Hope + 1 GDCC
* Someone trades 10 Hope for 10 GDCC.
* Someone else trades 10 GDCC for 10 Hope.
* The Hope/GDCC liquidity pool now has 10.010 Hope and 10.010 GDCC.
* Each LP token is now worth 1.00010 Hope + 1.00010 GDCC.

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 Hope Farm , while still earning your 0.10% trading fee reward.

## Impermanent Loss

Providing liquidity is not without risk, as you may be exposed to impermanent loss.

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[“Simply put, impermanent loss is the difference between holding tokens in an AMM and holding them in your wallet.” - Nate Hindman](https://blog.bancor.network/beginners-guide-to-getting-rekt-by-impermanent-loss-7c9510cb2f22)