Flexible Liquidity Rules

The Flexible Liquidity portion (15% of total LP) is protected with daily withdrawal limits and timelock enforcement.

Flexible Portion Characteristics

Property	Value
Portion of Total LP	15% of total LP
Daily Withdrawal Limit	Configurable (e.g., 1% of flexible)
Withdrawal Process	Proposal + Timelock
Lock-Up Period	None
Consumption Tracking	Daily

Daily Limit Mechanism

How Daily Limits Work

Total Flexible LP: 1000 LP
Daily Limit: 1% = 10 LP per day

Day 1:
- Available: 10 LP
- Withdraw: 5 LP
- Consumed: 5 LP
- Remaining: 5 LP

Day 2:
- Available: 10 LP (resets)
- Withdraw: 8 LP
- Consumed: 8 LP
- Remaining: 2 LP

Day 3:
- Available: 10 LP (resets)
- Withdraw: 10 LP
- Consumed: 10 LP
- Remaining: 0 LP

Limit Enforcement

Daily limits are enforced by smart contract:

• Consumption tracked per day
• Resets daily
• Cannot exceed limit
• Prevents large sudden withdrawals

Limit Verification

You can verify daily limit status:

1. PolygonScan — Check limit events
2. Contract Functions — Call getDailyLimitStatus()
3. Community Tools — Use LP dashboards
4. Real-time — See current consumption

Withdrawal Process

Step-by-Step

1. Check Daily Limit
   - Daily limit: 10 LP
   - Current consumption: 3 LP
   - Available: 7 LP

2. Propose Withdrawal
   - Owner proposes withdrawal
   - Amount: 5 LP (within limit)
   - Proposal recorded on-chain

3. Timelock Period
   - 7 days (example)
   - Community monitors
   - Proposal can be cancelled

4. Execute Withdrawal
   - After timelock expires
   - Owner executes withdrawal
   - 5 LP transferred

5. Completion
   - LP balance updated
   - Daily consumption updated
   - Event logged on-chain
   - Transparency maintained

Withdrawal Limits

Withdrawals are limited by:

• Daily limit — Cannot exceed daily cap
• Timelock delay — Must wait for timelock
• Proposal requirement — Must follow proposal process
• Community oversight — Community can monitor

Flexible LP Examples

Example 1: Daily Limit Consumption

Flexible LP: 1000 LP
Daily Limit: 1% = 10 LP per day

Day 1:
- Propose withdrawal: 8 LP
- Within limit: Yes
- Proposal recorded

Day 2:
- Timelock expires
- Execute withdrawal: 8 LP
- Daily consumption: 8 LP
- Remaining: 2 LP

Day 2 (later):
- Propose withdrawal: 5 LP
- Within limit: No (only 2 LP remaining)
- Proposal rejected

Day 3:
- Daily limit resets
- Available: 10 LP
- Propose withdrawal: 5 LP
- Within limit: Yes
- Proposal recorded

Day 4:
- Timelock expires
- Execute withdrawal: 5 LP
- Daily consumption: 5 LP
- Remaining: 5 LP

Example 2: Multiple Withdrawals

Flexible LP: 1000 LP
Daily Limit: 1% = 10 LP per day

Day 1:
- Propose withdrawal: 3 LP
- Proposal recorded

Day 2:
- Timelock expires
- Execute withdrawal: 3 LP
- Daily consumption: 3 LP
- Remaining: 7 LP

Day 2 (later):
- Propose withdrawal: 7 LP
- Within limit: Yes
- Proposal recorded

Day 3:
- Timelock expires
- Execute withdrawal: 7 LP
- Daily consumption: 10 LP
- Remaining: 0 LP

Day 4:
- Daily limit resets
- Available: 10 LP
- Can propose new withdrawal

Flexible LP Transparency

Public Information

All flexible LP information is public:

✅ LP Balance — Current LP holdings
✅ Daily Limit — Daily withdrawal limit
✅ Daily Consumption — Current day consumption
✅ Remaining Available — Available for withdrawal
✅ Withdrawal History — Past withdrawals

Verification Methods

You can verify flexible LP information:

1. PolygonScan

   • Check withdrawal events
   • View daily consumption
   • Monitor limit status
   • Track withdrawals

2. Contract Functions

   • Call getFlexibleLPBalance()
   • Call getDailyLimitStatus()
   • Check remaining available
   • View withdrawal history

3. Community Tools

   • Use LP dashboards
   • Monitor daily consumption
   • Track limit status
   • Analyze patterns

Flexible LP Benefits

For Operations

✅ Operational flexibility — Some LP available for operations
✅ Daily limits — Prevents large sudden withdrawals
✅ Timelock protection — Waiting period enables oversight
✅ Community oversight — Community can monitor

For Investors

✅ Confidence — Daily limits prevent abuse
✅ Stability — Limits support price stability
✅ Transparency — All operations visible
✅ Oversight — Community can monitor

Key Takeaways

1. Daily limits — Caps on daily withdrawals
2. Consumption tracking — Daily consumption tracked
3. Resets daily — Limit resets each day
4. Timelock enforcement — All withdrawals require delays
5. Complete transparency — All operations logged on-chain

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Next: Learn about Timelock Workflow for withdrawal processes.