> For the complete documentation index, see [llms.txt](https://docs.playscript.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.playscript.xyz/stakes-and-results/lps.md). # Liquidity providers Liquidity providers deposit Amazon shares, back the reserved payouts, and earn the PLAY left after settlement. Liquidity providers supply the Amazon shares that winning scripts are paid in. Traders supply PLAY. You do not need to lock a script to be a provider, and you do not need to be a provider to lock a script. Open Vaults to deposit or withdraw. ## What you deposit You deposit the Amazon stock token. You receive vault shares. Your claim on the share pool is your shares divided by total shares. The first deposit mints one vault share per Amazon share. Later deposits mint shares in proportion to the pool at that moment, so you buy into the pool at its current size. You are not given PLAY that was already credited to earlier shares. ## What is reserved Each open script reserves its maximum Amazon payout: the share count for five correct slots. That count was frozen at lock from the signed PLAY price and the signed Amazon price. The vault also holds back a 2% floor of the Amazon balance. The floor is not free cash. What you can withdraw is free float: `Amazon balance − reserved maximum payouts − 2% floor` A trader's PLAY does not increase free float while their script is open. The stake arrives together with a reserve of three times its value in shares, so the pool does not treat that moment as spare inventory. ## Where the PLAY goes PLAY and Amazon shares are not one blended balance. * **Winning script.** The holder receives Amazon shares from the reserve. Unused reserved shares return to free float. Five percent of the PLAY stake goes to the treasury. The rest of that PLAY is credited to vault shares. * **Losing script.** No Amazon shares are paid. The whole reserve returns to free float. There is no treasury fee. The full PLAY stake is credited to vault shares. The credit is per vault share, at the time of settlement. If you deposit after a script has already settled, you do not collect the PLAY from that script. You collect PLAY only from scripts that settle while you hold shares. The 5% fee is not LP income. Providers earn the PLAY that remains, and they earn Amazon shares when a reserve is released unused. ## A small pool A provider deposits 10 Amazon shares and receives 10 vault shares. The floor is 0.20 shares. Free float starts at 9.80. A trader then locks a script whose perfect payout is 1.20 Amazon shares. The vault reserves 1.20. Free float falls to 8.60. The trader's PLAY is in the vault, but it is not withdrawable as shares. If the script hits all five, the holder receives 1.20 shares. The reserve is used up. Five percent of the PLAY stake goes to the treasury. The other 95% is credited across the 10 vault shares. If the script hits four, the holder receives 0.72 shares. The other 0.48 shares return to free float. The same 5% PLAY fee applies, and the remaining PLAY is credited to the 10 shares. If the script misses, the holder receives nothing. All 1.20 shares return to free float. The full PLAY stake is credited to the 10 shares. A second provider who deposits after that credit gets a claim on the Amazon shares still in the pool. They do not receive the PLAY that was just assigned to the first 10 shares. ## Withdrawing You burn vault shares and receive Amazon shares, up to the current free float. If most of the pool is reserved, the withdrawal is partial. The rest becomes available as scripts settle and unused reserves are released. You cannot withdraw another provider's reserved payout, and you cannot take the 2% floor. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://docs.playscript.xyz/stakes-and-results/lps.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. 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