# Simple V2 Pools

<figure><img src="/files/LKl8L0oDbUYsVdGoSEQS" alt=""><figcaption></figcaption></figure>

Liquidity is always added in a 1:1 value ratio into a Liquidity Pool. When you add liquidity to a pool, you will receive LP tokens which represent a share of the pool. When someone makes a token swap, a transaction fee will be charged. 50% of the fee will be returned to liquidity providers in the form of a fee reward.

{% hint style="info" %}
**For instance, if you add liquidity in the form of  $SMR and $LUM, you will receive LUM-SMR LP tokens. The number of LP tokens you receive represents your share in the SMR-LUM  liquidity pool. You can always request the withdrawal of your funds by removing your liquidity.**
{% endhint %}

Please note that when adding liquidity you will need to have a sufficient amount of each token and you can only allocate them in a 1:1 value ratio.\
Let’s say you want to add the following liquidity: 10 SMR / 14 USDC. If you have less than 14 USDC or less than 10 SMR, you will not be able to proceed. You need to have a sufficient amount of each token.

{% hint style="danger" %}
Keep in mind that providing liquidity could be subject to **impermanent loss** and it **may carry certain risks**. Make sure you are aware of all the pros and cons of providing liquidity before taking any actions. You can learn more about impermanent loss by clicking[ here](https://academy.binance.com/en/articles/impermanent-loss-explained).
{% endhint %}

#### To add Liquidity for a token pair follow the simple instructions below:

1. Navigate in the menu to "Pool" -> "My Liquidity"
2. Click "Add Liquidity"
3. Select your two input token you want to supply
4. Select token amount you want to supply and lick "Supply"
5. Check transaction overview and click "Confirm Supply"
6. Confirm transaction in wallet
7. You find your Liquidity Token under "My Liquidity"


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