# LP FAQ

To help you better understand Liquidity Pools (LP) and how to provide liquidity on SEGA, here are some common questions and answers:

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<summary><strong>What’s APR All About?</strong></summary>

APR (Annual Percentage Rate) on SEGA reflects pool and farm yields, calculated from daily (default), weekly, or monthly performance. These figures are just snapshots—past gains don’t guarantee future wins.

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<summary><strong>Where Does the Yield Come From?</strong></summary>

SEGA’s yield flows from two main streams:

**--Maker Fees:** Collected from swaps in the pool.&#x20;

\--**Eco Rewards:** Ecosystem partners contribution

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<summary><strong>Why Provide Liquidity to SEGA AMM Pools?</strong></summary>

Liquidity providers score big:

* **Swap Fees:** Each pool trade takes a 0.25% fee—84% goes back to the pool for LPs, 16% fuels SEGA Ecosystem & protocol.

*New to impermanent loss? Peek at this primer to get the basics*, [reviewing this article](https://blog.bancor.network/beginners-guide-to-getting-rekt-by-impermanent-loss-7c9510cb2f22) for a basic understanding is highly recommended.

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<summary><strong>What Are LP Tokens?</strong></summary>

LP (Liquidity Provider) tokens are your proof of ownership in a pool. Drop SOL and SEGA into the SOL-SEGA pool, and you’ll snag SOL-SEGA LP tokens, visible in your Sonic SVM wallet.

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<summary>Why Did My Transaction Fail? </summary>

Common reasons include:

* **Insufficient SOL:** Network fees (gas) require SOL—keep at least 0.05 SOL in your wallet.
* **Slippage Tolerance:** If pool prices shift beyond your set tolerance, the transaction fails. Increase it on the swap interface
* **Pending Approvals:** A “Making Transaction” notice means your SPL wallet needs approval—confirm it promptly.

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<summary>Your question is not answered in this FAQ? </summary>

Join the SEGA [Discord](https://discord.com/invite/sk8mGwb4A4) or follow us on [X](https://x.com/Sega_so) for 24/7 support. Our community managers are ready to assist!

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