# Providing Liquidity

The equation below defines a function g(r) where:

- r is the collateralization ratio

$g(r) = \frac{0.00003} {r^8}$

This general formula is used for calculating fees associated with providing liquidity to the protocol, as well as slippage.

In the future, the numerator (0.00003) and the exponent (8) may be adjustable for independent pools to allow for more flexibility.

The following subjects feature more detailed explanations on

*depositing*,*withdrawing*and the*liquidity provider token*set-up.Last modified 7mo ago