> For the complete documentation index, see [llms.txt](https://docs.antarctic.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.antarctic.exchange/antarctic-overview/liquidity-provider-protection.md).

# Liquidity Provider Protection

Liquidity providers are fundamental to the **stability**, **depth**, and **execution quality** of AX. Our dual-vault architecture—**AMLP** for market-making and **AHLP** for hedging—forms the foundation of a system designed to protect LP capital while supporting efficient execution across the exchange.

Looking ahead, AX plans to introduce enhanced incentive mechanisms and updated **APY structures** in **future**. We are also developing an additional liquidity pool dedicated to supporting the broader AX ecosystem. By depositing assets into these pools, LPs can benefit from **controlled capital deployment**, earn **competitive yield**, and unlock additional ecosystem rewards made available by AX.

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