> For the complete documentation index, see [llms.txt](https://l2finance.gitbook.io/market-background/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://l2finance.gitbook.io/market-background/trading-ecology/sources-of-l2finances-profits.md).

# Sources of L2FINANCE's Profits

①Gaming: While L2FINANCE is a liquidity provider, the platform is also gaming with derivative agreement traders. L2FINANCE gains from the traders' losses, which of course is one of its main sources of profits.\
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②Liquidity incentives: As a more advantageous market maker, L2FINANCE will have a more substantial and stable income in the liquid market.\
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③Service charges: When liquidity is provided, the platform charges a transaction fee as a source of gains.\
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④Pledged interests: Gain from providing liquidity in some derivative sing-currency token pledge pools.\
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⑤Strategy trading: L2FINANCE makes certain profits through derivatives buying and selling spread trading and AI automation trading.\
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⑥Deposit interest: L2FINANCE splits its funds for trading and other operations, part of which is used as a security deposit and interest income can be earned on it. 

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