> For the complete documentation index, see [llms.txt](https://docs.jetbit.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.jetbit.com/the-liquidity-pool.md). # The Liquidity Pool Most people on Jetbit take positions. On the other side of all of them is the liquidity pool. If you provide liquidity, you become the counterparty to every trade on the platform and earn what Jetbit calls the house edge. This page explains how that works and what you are taking on. ## Being the house When you stake USDT into the pool, you join the group that trades against everyone else. Fees, funding, and liquidations all flow to the pool. When traders lose, the pool gains. When traders win, the pool pays them out of its balance. {% hint style="warning" %} Providing liquidity is not a fixed yield. Your stake rises and falls with how traders do against the pool. Over time the pool holds an edge, the same way a house does, but any given stretch can go either way. Only stake money you can afford to see move. {% endhint %} ## Reading the pool dashboard The Pool page shows the state of the pool in real time. * Pool TVL is the total USDT held by the pool and its reserve. * Virtual Price is the value of one pool share. It rises as the pool banks the house edge and falls on trader-win drawdowns. * Available Pool is the USDT free to back trades. * Insurance reserve is the amount set aside to protect stakers, held separately from trading. Below these you can see the pool composition, its utilization, the total principal staked, and the current insurance coverage. Share value is the TVL divided by the total staked principal. ## Staking and lock tiers To provide liquidity, choose an amount and pick a lock tier. The presets let you stake a quarter, half, three quarters, or your full balance. The lock tier sets how long your stake is committed and how much downside protection it carries. The short tiers of 1, 3, and 7 days keep your liquidity flexible with no insured floor. The longer tiers of 30, 90, and 120 days add an insured floor of 5%, 10%, and 15%, which protects that share of your principal even if the pool draws down. Longer locks buy more protection, so you are trading some flexibility for a larger safety net. When you stake, the deposit is split in one transaction. A small fee goes to the protocol, an insured slice goes into the reserve, and the rest becomes at-risk capital that earns the house edge. ## Your position as an NFT Every stake mints an NFT that records your shares, your at-risk amount, your insured amount, and your lock end date. It is a portable on-chain receipt for your position, and it is burned when you unstake. ## Unstaking When your lock ends, you can unstake. The pool pays out your at-risk principal plus your profit or minus your loss, and the reserve refunds your insured amount one to one, untouched by trading. A small unstake fee applies, and your position NFT is burned once the unstake completes. ## The short version Your share value grows when the pool banks trader losses and trading fees, and it shrinks when traders win. Longer lock tiers protect more of your principal in exchange for less flexibility. Everything the pool holds is on-chain and can be checked on BscScan. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.jetbit.com/the-liquidity-pool.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.