Removing Liquidity On Classic
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Introduction
Have you discovered an even better yield opportunity or maybe you just want to take a break from the markets. You can easily reduce the amount of liquidity within a position or exit the position completely through removing all your contributed liquidity. This guide describes the steps to remove all or part of your liquidity from a position.
Liquidity Provider Flow
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Next steps
Removing Liquidity On Classic <-
Removing liquidity position
Step 1: Select position
From the My Pools page, choose the position from which you want to remove liquidity and click on its “Remove Liquidity” button.
This brings up the Remove Liquidity screen.
Step 2: Specify removal amount
KyberSwap Classic provides LPs the option to withdraw their position as a token pair or a single token. Withdrawing to a single token (a.k.a zaps) enable users to conveniently withdraw their position's value as either token in the pool. LPs can choose to remove part or the whole position.
Note: If you choose to remove 100% of the liquidity in this position, that is tantamount to closing the position. Once this operation is complete, you will only see this position if you toggle the “Show closed positions” button on your My Positions page.
Specify the amount of liquidity to remove. You can do this either by using the pre-set percentage buttons or the percentage slider, or by manually typing in the amount for either leg of the pair.
For single token removals, you can specify the percentage or exact amount of LP tokens to remove. The corresponding output token amount can be seen under the "Output".
You can also switch the output token by selecting the token under the "Output" section.
Fee-on-transfer tokens
Certain ERC20 token smart contracts implement a fee-on-transfer (FOT) mechanism whereby for every token transfer, a percentage of the tokens are burned or distributed to various wallets. As a permissionless dapp, KyberSwap enables users to Add Their Favourite Tokens and hence do not limit the type of tokens traded as long as the token follows the ERC20 standard.
When adding or removing FOT tokens from an AMM pool, tokens will be transferred to and from the pool contract. Given that FOT tokens are designed to charge a tax on every transfer, each addition or removal of FOT tokens from a pool will incur a FOT tax which is usually a fixed percentage of the transfer amount.
Note that the FOT tax is specified in the FOT token's smart contract (i.e. the FOT token team) hence KyberSwap does not have any control over the FOT mechanism. Users are advised to trade such tokens at their own risk as KyberSwap was optimized to handle the standard ERC20 implementation.
Step 3: Authorize contract
If you haven't done so, you will need to permit the pool contract to remove your position from the pool. Note that this signature request does not require any gas.
Once you have authorized the contract, the previously disabled "Remove" button will now be available.
Step 4: Review liquidity removal
Click the "Remove" button to bring up the preview screen. The preview screen displays a few key pieces of information for review.
Amount of tokens that you will receive after removing the position
Current price: the rate at which the swap will happen (this can be inverted using the 🔁 button).
LP Tokens Removed: The number of LP tokens, which represents your position, that will be removed
Minimum Received: This is the minimum amount of output tokens that you will receive from the removal. The removal will only be completed if this minimum amount threshold is achieved else the transaction will revert.
Slippage: Protecting your liquidity
As an AMM protocol, any removal of liquidity from the pool might result in slippage whereby the final amount withdrawn differs from the expected amount. To minimize the effects of slippage, KyberSwap Classic enables you to configure a slippage tolerance that caps the amount of slippage above which your transaction will be reverted (i.e. failed and cancelled).
Please refer to AMM Slippage for further details on why slippage occurs and how to protect your liquidity additions or removals.
Click the “Confirm” button to proceed. You should be prompted to confirm the transaction in your wallet.
Once confirmed, the Transaction Submitted screen will appear. You can click on "View Transaction" to see your transaction on the blockchain explorer.
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