> For the complete documentation index, see [llms.txt](https://docs.dayhub.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.dayhub.io/meet-the-dayhub/ecosystem/how-it-works/liquidity-providers.md). # Liquidity Providers Liquidity Providers supply the necessary financial resources that enable the functioning of various trading challenges. Similar to providing liquidity on a DEX, they receive a portion of the profits according to their share in the Funded Pool. In the Dayhub ecosystem, Traders take on challenges that can lead to access to real financial resources, and liquidity providers play a crucial role in maintaining the stability and liquidity of these operations. In the case of Live Trading, Liquidity Providers supply the funds that traders can use for Live Trading after passing the challenge. They contribute capital to the Funded Pool, which is used as a deposit on the perpetual DEX chosen by the Creator. Profits that go into the Funded Pool are distributed to Liquidity Providers, according to the share in the Pool. In Sim Trading, the funds provided by Liquidity Providers create the Prize Pool, from which the profits of traders playing on the simulator are financed. The Creator decides whether there is an opportunity to provide liquidity to a given challenge. --- # 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://docs.dayhub.io/meet-the-dayhub/ecosystem/how-it-works/liquidity-providers.md?ask=&goal= ``` `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.