# Understanding Returns

WhiteSwap incentivizes users to add liquidity to pools by rewarding providers with fees on trades. Market making, in general, is a complex activity that has the risk of losing money (compared to just **hodling**) in the case of big directional moves of the underlying asset price.

## Risks <a href="#risks" id="risks"></a>

To understand the risks associated with providing liquidity, you can read <https://medium.com/@pintail/uniswap-a-good-deal-for-liquidity-providers-104c0b6816f2> to get an in-depth look at how to conceptualize a liquidity position.


---

# Agent Instructions: 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:

```
GET https://docs.ws.exchange/advanced-topics/understanding-returns.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.