> For the complete documentation index, see [llms.txt](https://docs.metric.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.metric.xyz/use-metric/provide-and-manage-liquidity.md).

# Provide and manage liquidity

{% hint style="danger" %}
**Providing liquidity on Metric is high risk. You can lose your entire deposit.** Read [Risks and safeguards](/use-metric/provide-and-manage-liquidity/risks-and-safeguards.md) before you deposit.
{% endhint %}

Your liquidity sits in bins: price ranges relative to the pool's reference price. When the reference moves, your ranges move with it, so there is no range to manage and no rebalancing script.

You earn a share of the spread traders pay **when trades use your bins' liquidity**, after the curator's and Metric's fees. Earnings compound into your position, with nothing to claim. Unused liquidity earns nothing, even if other bins in the same pool are active.

## Choose a pool

Start with the pool's [tier](/use-metric/provide-and-manage-liquidity/pool-tiers.md), then check:

* **Pricing:** What sets the quotes, and is it anchored to a trusted oracle?
* **Control:** Who is the curator, are they verified, and what can they still change: the provider, its settings, fees, safeguards?
* **Logic:** Is the Price Provider's logic public and simple, or undisclosed?
* **Extensions:** Can a custom withdrawal extension block your withdrawal? Do you understand what each swap extension does?
* **Earnings:** What share of the spread do the curator and Metric take as fees, and is the pool actually generating LP earnings? See [Understanding your returns](/use-metric/provide-and-manage-liquidity/understanding-your-returns.md).

See [Risks and safeguards](/use-metric/provide-and-manage-liquidity/risks-and-safeguards.md).

## Deposit

1. Open the pool in [Metric](https://app.metric.xyz) and connect your wallet on the correct network.
2. Select the bins where you want to provide liquidity.
3. Enter the amounts and review your allocation.
4. Approve token spending if requested, then confirm the deposit.

You can choose any available bins. Some allocations require **one token**; others require **both**, depending on the bins' current composition.

{% hint style="info" %}

#### Example: choosing bins

An ETH/USDC pool, reference $2,000, active bin just below the reference. You select bins from −1% to +1%.

* **What the deposit asks for.** Bins above the active price hold ETH (they sell ETH to buyers). Bins below hold USDC (they buy ETH from sellers). The active bin holds both. Your allocation decides which token, or both, the deposit requires.
* **The reference suddenly moves to $2,100.** Every bin reprices to its new percentage range. Nothing is bought or sold: you keep the same tokens, and your ETH is worth more. You earn nothing from the move itself. A drop works the same way, except your ETH is worth less.
* **Traders buy ETH.** The active position climbs through your upper bins. In each bin your ETH is sold at that bin's price plus the spread, and what you earn stays in that bin. Bins the trade never reached earn nothing.
* **You withdraw.** You receive less ETH and more USDC than you deposited, plus your share of what those bins earned. Whether that leaves you ahead of simply holding depends on where ETH goes next; see the [examples](/use-metric/provide-and-manage-liquidity/understanding-your-returns.md#trading-pnl).
  {% endhint %}

## Manage or withdraw

Open your position, choose how much liquidity to remove, review the tokens you will receive, then confirm in your wallet.

Your earnings stay in the bins and compound into your position; there's nothing to claim. Trades change your token ratio, so you may withdraw a different ratio of tokens than you deposited.

Moving ranges does not remove market exposure. See [Understanding your returns](/use-metric/provide-and-manage-liquidity/understanding-your-returns.md).

Related: [Fees](/use-metric/fees.md).