> For the complete documentation index, see [llms.txt](https://docs.ax11.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ax11.org/automated-market-makers-amm/liquidity-prediction-market-lpm/liquidity-tokens.md).

# Liquidity Tokens

When users provide liquidity, they receive liquidity provider (LP) tokens representing their share of the pool.

At Ax11, liquidity is divided into two sides: users receive **LPX tokens** for their token X contribution and **LPY tokens** for their token Y contribution. Both tokens are fungible and adhere to the ERC-20 standard, ensuring seamless integrations and future developments.

By utilizing **LPM** features on the Ax11 protocol, LP tokens can be further diversified into:

* **LPX-long** (Liquidity X long token)
* **LPX-short** (Liquidity X short token)
* **LPY-long** (Liquidity Y long token)
* **LPY-short** (Liquidity Y short token)

{% hint style="info" %}
Swap cannot be used to switch between different token positions. For example, an X long position cannot be swapped into a Y long or Y short position. Swaps are only allowed within the same token position.
{% endhint %}

{% hint style="info" %}
LPM is an **optional feature**, extending beyond standard liquidity provision. It is designed for users who seek **additional earning opportunities** while participating in the Ax11 ecosystem.
{% endhint %}