# AMM Pool
AMM pool participation is ultimately providing liquidity to exisiting token pairs.
If you decide to participate in providing liquidity, you must have enough amount for both of the tokens on the pair you wish to provide liquidity with.
For example: LRC/ETH pair
If you want to provide liquidity in this pair, you will need atleast 0.2 ETH and 116 LRC (at the time of writing). Both translates to $34.
The respective tokens should have the same value for it to participate in the pool.+
{% hint style="danger" %}
**IMPORTANT**
Providing liquidity comes with risk. One of which is [impermanent loss](https://www.youtube.com/watch?v=8XJ1MSTEuU0). It is strongly advised to read up on impermanent loss before investing into an AMM pool.
{% endhint %}
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