Liquidity Provision FAQ

Is there any cost associated with being an LP?

There is no protocol-level fee to add or remove LP shares, aside from a rounding fee when liquidity is removed (burning LP shares).

Burning LP Shares (analogous to cancelling open orders), will automatically settle positions acquired through being an LP to the user account.

Given the LP may acquire a base amount that differs from the market's minimum step size (e.g. 0.1 SOL), the cost basis will be rounded on any residual remainder value below this size. This means the minimum remove liquidity fee is zero while the maximum is the quote value (using oracle) of the minimum step size in the market. This amount is determined by the remainder base asset amount in the LP position.