# Liquidity Providers Liquidity providers 💰 participate by providing funds (stablecoins) to the liquidity pool. When they do that they receive pool tokens in return following a “post-money” valuation strategy, i.e., proportionally to their contribution to the total amount of capital allocated in the pool including the expected value of open option positions held by the pool (this allows new liquidity providers to enter the pool at any time without harm to pre-existent providers). Funds are locked in the pool until it reaches its pre-defined liquidation date, whereupon the pool ceases operations and accumulated capital is distributed to liquidity providers proportionally to their participation in the total supply of pool tokens. A single **Defi Options** liquidity pool instance is able to trade a wide range of options of different maturities, strike prices, and even underlying assets, thus reducing the pool's returns overall volatility due to diversification. We believe this feature will appeal to liquidity providers that are seeking exposure to options in a more controlled way. --- # Agent Instructions: 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: ``` GET https://docs.defioptions.org/protocol/roles/liquidity-providers.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.