# 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.

<figure><img src="/files/LnoRrDFnHX7eiRbyljgD" alt=""><figcaption></figcaption></figure>


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