> For the complete documentation index, see [llms.txt](https://betfin.gitbook.io/betfin-public/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://betfin.gitbook.io/betfin-public/smartcontracts-description/liquidity-pool-v2.md).

# Liquidity Pool (V2)

Technical Features:

* **Share Pricing**: Uses an "effective balance" that adds back claimed rewards to ensure fair share value for new depositors.
* **Position NFTs**: Every deposit mints an ERC721 "Betfin Liquidity Position" (BLP) NFT representing ownership.
* **Risk Protection**: Enforces a 5% daily drawdown limit on reserves and a 50% loss threshold circuit breaker that halts betting if the pool balance drops too low.

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