> For the complete documentation index, see [llms.txt](https://docs.miragefi.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.miragefi.org/using-miragefi/liquidity-providers.md). # For liquidity providers A working guide to funding vaults: how to deposit, earn, monitor and exit. Providing liquidity on MirageFi means funding one or more [anchor vaults](/protocol/anchor-vaults.md) and earning the spread on their fills. It resembles underwriting a market-making book far more than farming: the return is genuine flow revenue, and the risks are inventory risks, set out in full in [Liquidity provision](/protocol/liquidity-provision.md). Start there; this page covers the practical steps in order. ## Onboarding Taking part as an LP requires an `LP` attestation, which at launch is issued to professional clients through the same flow used for trading eligibility. Because the vaults you fund hold Stock Tokens, the [issuer-risk disclosure](/risk/issuer.md) forms part of onboarding. ## Choosing markets Every vault is a separate decision, and the [trade explorer](/using-miragefi/trade-explorer.md) publishes the data needed to underwrite it: * realised spread revenue and volume by regime, from listing onward, * the current inventory mix and its skew relative to the band, * the market's tier parameters and caps, * the halt history, with reasons. Tier A markets turn over more at tighter spreads; Tier C collects wider spreads on thinner flow that gaps more. There is deliberately no pooled product that makes the choice for you. ## Depositing Deposit USDG, the market's token, or both; the vault prices the deposit at the guarded mid and mints shares in return. There are no lockups and no deposit fees. Throughout the guarded launch each vault carries a TVL cap, shown on its page; a full vault takes no further deposits until the cap is raised through the timelock. ## While deposited Value per share grows with every fill, and your position page shows it live alongside your share of the current inventory. Points worth keeping an eye on: * **Skew.** A vault sitting at the edge of its band is one-sided and earns less; skew that never reverts to the mean means flow in that market is persistently one-directional. * **Regime mix.** Fills in the closed regime carry the gap risk premium you are being paid for; the explorer shows the share of your vault's fills made at the weekend. * **Halts.** While halted, a vault earns nothing, and your withdrawal rights are untouched. ## Exiting Withdrawing burns shares for a pro-rata, in-kind mix of the USDG and tokens the vault holds at that moment, in every vault state, without exception. Plan for two consequences: * Depending on the vault's mix at exit, you may come away with more token and less USDG than you put in (or the reverse). Swapping the token leg back is a normal trade at normal cost. * An exit during the `CLOSED` regime leaves you holding inventory you cannot cheaply flatten until the underlying market opens. Exiting is always possible; a well-timed exit is still worth timing. ## Taxes and accounting Share value accrues price movement and spread revenue together, and an in-kind withdrawal counts as a disposal event under most regimes. The explorer exports the full history of each position as CSV; how to interpret it is a matter between you and your adviser. Nothing in these documents constitutes tax advice. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.miragefi.org/using-miragefi/liquidity-providers.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.