> For the complete documentation index, see [llms.txt](https://faqs.thorwallet.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://faqs.thorwallet.org/liquidity-pooling/impermanent-loss-protection.md).

# Impermanent Loss Protection

{% hint style="warning" %}
 Impermanent Loss Protection (ILP) has been completely deprecated on THORChain. However, MayaChain continues to offer ILP at a rate of 1% per day.
{% endhint %}

**ILP on MayaChain**:

* **ILP** coverage begins on the 50th day after entering the pool.
* **If ASSET outperforms CACAO**, full ILP coverage is achieved after 150 days (50 days from the initial deposit plus 100 days in the pool).
* **If CACAO outperforms ASSET**, full ILP coverage is achieved after 450 days (50 days from the initial deposit plus 400 days in the pool).

For example, if you deposit $1,000 worth of ASSET and CACAO into the pool, you will be able to withdraw at least $1,000 worth of ASSET and CACAO after 150 days, regardless of the pool's performance or the price action of the assets (assuming ASSET outperforms CACAO).

{% hint style="info" %}
For more details on ILP on MayaChain, check out this resource: [Impermanent Loss Protection (ILP) on MayaChain](https://docs.mayaprotocol.com/deep-dive/how-it-works/impermanent-loss-protection-ilp)
{% endhint %}

### Liquidity Pooling Strategies

Explore these common[ LP strategies](https://discord.com/channels/818198163776733245/823845894591741952) to optimize your approach:

* **Basic LP Scenarios**: Learn about fundamental liquidity provider strategies in the Thorchain University Discord.

### Custody During Liquidity Providing 

Yes, the assets are transferred to [THORChain](https://www.thorchain.com/)’s/[Mayachain](https://www.mayaprotocol.com/)'s address/vaults on-chain but only your address (private key) can redeem the asset back. All code is open-sourced, and is audited multiple times. You can either audit the code yourself, or trust the community who have pored over the code; to make sure the above points are correct.