> For the complete documentation index, see [llms.txt](https://v1faq.infinity.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://v1faq.infinity.exchange/be-a-liquidity-provider/lending-lp-positions.md).

# Lending LP Positions

The Lending LP Position enables you to earn an interest-like return in exchange for providing capital to the Lending protocol. This position is seen as an Asset or Long position.

### Trade Mechanics

The position works along a similar concept as Uniswap's concentrated liquidity. That is, you select a Principal or Trade Amount, and a desired lower + upper range (i.e. tick values) for which that Principal Amount will be switched into or out of Lending positions. 

For example: 

* If the Spot or Reference Rate is 4%
* LP may then provide a range of 4-8% (where the lower bound = the current Ref Rate)

If the Reference Rate moves within the range of 4-8%, then the Lend LP will receive a share of protocol fees in proportion to the total Lending LP positions within that range. 

### Unwinding Positions

At any time, the underlying position for the LP position (using the example above) is one of:

* Ref Rate > 8%:  100% of Principal is Lent out (and earning interest)
* Ref Rate < 4%: 0% of Principal is Lent out
* 4% < Ref Rate < 8%: 0% to 100% of Principal is Lent Out

When you unwind your position, you will receive one of the above three depending on the underlying position. Your position will not 'reset' to the original $10mm cash position unless the Ref Rate is below your lower bound, or you have performed additional steps to unwind the underlying positions.

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Be sure to read our primer on Lending LP Position Risk (coming soon)
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