# Liquidity Provider Protection

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

Looking ahead, AX plans to introduce enhanced incentive mechanisms and updated APY structures in Q1 2026, further strengthening returns for participants. 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 secure capital utilization, earn competitive APY, and unlock additional ecosystem rewards provided by AX.

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