> For the complete documentation index, see [llms.txt](https://docs-perp.trado.one/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs-perp.trado.one/token/pool.md).

# Pool

A liquidity pool refers to a special type of smart contract used to store and manage the liquidity of asset pairs. Liquidity pools allow users to trade crypto assets without the need for intermediaries.

### Composition of Liquidity Pool

Within the Trado exchange, TLP serves as the liquidity provider token. Purchasing TLP is equivalent to providing liquidity to the platform, while selling TLP means withdrawing liquidity.

As liquidity providers (LPs), they act as counterparties to all trades on the platform. When traders profit (positive gains), LPs incur losses; when traders incur losses (negative gains), LPs profit.

LP profit and loss data, TLP price charts, and other statistical data can be viewed in the "**Portfolio**" - "**Overview**" section.

### How to Provide Liquidity

For instructions on providing liquidity, please refer to the [How to Provide Liquidity?](/perpetual/getting-started/how-to-provide-liquidity.md)


---

# 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:

```
GET https://docs-perp.trado.one/token/pool.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
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.