> 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.

{% hint style="info" %}
Be sure to read our primer on Lending LP Position Risk (coming soon)
{% endhint %}


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://v1faq.infinity.exchange/be-a-liquidity-provider/lending-lp-positions.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.