# Liquidity Pools

## LP Tokens

When you add tokens to the liquidity pool, you will receive **Liquidity Provider (LP)** tokens, and you are called **Liquidity Providers**.&#x20;

Liquidity Providers will share together 5/6 of the **trading commission** that occurred in the liquidity pool where the liquidity is added. Additionally, LP tokens can be deposited in farms to harvest VAN rewards, which is called [farming](https://van-swap.gitbook.io/vanswap/products/farms).&#x20;

## How to Add/Remove Liquidity

For a detailed guide on how to add/remove, please check the following page.

{% content-ref url="liquidity-pools/how-to-add-remove-liquidity" %}
[how-to-add-remove-liquidity](https://van-swap.gitbook.io/vanswap/products/liquidity-pools/how-to-add-remove-liquidity)
{% endcontent-ref %}

## Impermanent Loss

One risk that all the Liquidity Providers should be aware of is the **Impermanent Loss**. To have a better understanding of what Impermanent Loss is and how to avoid that, please read the [article ](https://academy.binance.com/en/articles/impermanent-loss-explained)provided by Binance Academy.&#x20;
