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description: For stakers
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# Providing Liquidity

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**Warning!**

TON Hedge is currently in the alpha testing stage. Content of this section may change in the near future.

Providing liquidity involves risks and may result in impermanent losses. Please proceed at your own risk.
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## Overview

Liquidity for trading options is provided by users who stake USDT in the liquidity pool to earn from selling options. The pool is replenished with premiums paid by option buyers. Once a user stakes USDT in the pool, they receive a proportional amount of **$THLP** tokens, which represent their share in the pool.

APY for liquidity providers depends on trading volume and total pool size. TON Hedge reserves the right to limit the maximum size of the liquidity pool to keep stakers' APY more predictable. Users are not able to stake if this limit is exceeded.

**20%** of the pool is always available for withdrawal, which means that it is not available to buy more options if **80%** is utilized. There is a possibility that users may not be able to withdraw funds immediately. They may need to wait until the funds are unlocked, which occurs when the required number of options are exercised or expired.

## Risks[​](https://docs.gmx.io/docs/providing-liquidity/v2#risks) <a href="#risks" id="risks"></a>

Caution should be exercised when interacting with any smart contract or blockchain application. While risks are attempted to be mitigated through testing, but there is always a risk of vulnerabilities in smart contract code.

A non-exhaustive list of risks:

* Smart contract risks
* The [option price model](option-pricing) poses a risk of pool drawdowns
* Immediate withdrawal is not guaranteed, since liquidity may be used to cover active options — you may need to wait until their expiration
