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Questions tagged [locking liquidity]

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Lorenzo Lorenzo Wed Jan 08 2025 | 7 answers 1275

What does locking liquidity do?

I want to understand the purpose and effects of locking liquidity. What happens when liquidity is locked and how does it impact the overall financial system or a specific project?

What does locking liquidity do?

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Risk warning: Digital asset trading is an emerging industry with bright prospects, but it also comes with huge risks as it is a new market. The risk is especially high in leveraged trading since leverage magnifies profits and amplifies risks at the same time. Please make sure you have a thorough understanding of the industry, the leveraged trading models, and the rules of trading before opening a position. Additionally, we strongly recommend that you identify your risk tolerance and only accept the risks you are willing to take. All trading involves risks, so you must be cautious when entering the market.

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