> ## Documentation Index
> Fetch the complete documentation index at: https://docs.ratiofx.com/llms.txt
> Use this file to discover all available pages before exploring further.

# LP Participation

> Becoming a liquidity provider on Ratio

As a Liquidity Provider (LP), you deposit stablecoins into Ratio's pools and earn a share of FX swap fee revenue. Ratio supports both institutional LPs and stablecoin issuers as liquidity sources.

## How it works

<Steps>
  <Step title="Deposit stablecoins">
    Deposit stablecoins into Ratio's liquidity pools via the LP interface or API. Your depositing wallet must be whitelisted before your first deposit can be accepted.
  </Step>

  <Step title="Receive kTokens">
    You receive kTokens — receipt tokens (e.g., kUSD, kIDR) representing your proportional share of the pool. kTokens are rebasing ERC-20 tokens.
  </Step>

  <Step title="Earn swap fees">
    Your kToken balance automatically increases as the pool earns fees from FX swaps. The protocol increases the exchange rate between kTokens and the underlying stablecoin. You do not need to claim, harvest, or restake.
  </Step>

  <Step title="Withdraw">
    Redeem kTokens for the underlying stablecoin, subject to a cooldown period. The cooldown begins when you signal your intent to withdraw. Large withdrawals may be processed in tranches to avoid destabilising pool balances.
  </Step>
</Steps>

## kTokens

When you deposit a stablecoin, you receive the corresponding kToken:

| Deposit | Receive | Pool     |
| ------- | ------- | -------- |
| USDT    | kUSD    | USD pool |
| IDRX    | kIDR    | IDR pool |
| tnSGD   | kSGD    | SGD pool |
| MYRC    | kMYR    | MYR pool |

kTokens are rebasing ERC-20 tokens. Your balance grows automatically as the pool earns swap fees — no manual claiming required.

## LP classes

Ratio supports two LP classes to accommodate different risk preferences.

<Tabs>
  <Tab title="Class A — FX Only">
    Deposits are allocated to pools that support FX execution only. Class A LPs earn swap fees but are not exposed to yield strategy risk.

    This is the default class for stablecoin issuers who want full capital preservation.
  </Tab>

  <Tab title="Class B — FX + Yield">
    Deposits are split between FX execution pools and yield strategy pools. Class B LPs earn both swap fees and yield returns, with higher total returns but exposure to yield strategy risk.
  </Tab>
</Tabs>

<Info>
  LP class is configured during onboarding and can be changed by contacting your account manager.
</Info>

## Fee revenue

You earn revenue from every swap that touches your pool. When a user swaps USDT for IDRX, both the USDT pool and the IDRX pool earn a portion of the swap fee. Revenue is distributed proportionally to each LP's share of the pool.

Higher-volume pools generate more fee revenue for their LPs.

## Withdrawal process

LP withdrawals are subject to a cooldown period to protect pool stability. The cooldown begins when you signal your intent to withdraw and lasts a configurable duration set per pool. After the cooldown expires, withdrawals are processed in order (FIFO).

<Warning>
  Large withdrawals may be processed in tranches to avoid destabilising pool balances. Plan your withdrawal timeline accordingly.
</Warning>

## Requirements

| Requirement         | Value                                                |
| ------------------- | ---------------------------------------------------- |
| Minimum deposit     | \$50,000 equivalent                                  |
| KYB verification    | Required (LP onboarding track)                       |
| Wallet whitelisting | Kaia address must be registered before first deposit |

## Getting started

To become an LP, contact the Ratio team to begin the LP onboarding process. Onboarding covers:

* Compliance verification (KYB)
* LP class selection (Class A or Class B)
* Wallet whitelisting
* Deposit routing configuration

Once onboarded, you can deposit via the LP interface or by contacting your account manager to arrange deposit routing.