> For the complete documentation index, see [llms.txt](https://fluxflow.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fluxflow.gitbook.io/docs/tutorials/liquidity-provision.md).

# Liquidity Provision

Liquidity Providers on Flux earn fees by facilitating trades. We offer both sophisticated **Concentrated Liquidity** and standard **Full-Range** models.

## Selecting Your Strategy

Flux provides two distinct paths for LPs, depending on your risk profile and desired interaction level.

### Concentrated Liquidity (V3)

**Best for:** Active managers and professional LPs.

* **Efficiency:** Up to 4000x higher capital efficiency.
* **Control:** Define exactly where your capital is deployed.
* **Rewards:** Earn higher fees when the market price stays within your range.

## Step-by-Step Guide

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### Select Pool

Browse the [Pools Page](https://fluxflow.fi/liquidity) to view TVL, Volume, and APR metrics.
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### Set Range

Identify your price bounds. Narrower ranges earn more fees but face higher risk of being "Out of Range."
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### Deposit Assets

Input the amount of tokens you wish to provide. Flux will calculate the balance based on your selected price range.
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### Confirm Position

Sign the transaction. You will receive an NFT representing your specific V3 position or LP tokens for V2.
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**Impermanent Loss (IL):** All liquidity provision carries the risk of IL. In concentrated liquidity, IL is accelerated if the price moves significantly outside your defined range. Proceed with an understanding of these mechanics.
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