> For the complete documentation index, see [llms.txt](https://whalehub-1.gitbook.io/whalehub/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whalehub-1.gitbook.io/whalehub/vaults/depositing-liquidity.md).

# Depositing Liquidity

To use a vault, you deposit both tokens of a pool pair. Your deposit is added to the Aquarius AMM pool and begins earning immediately.

## How to Deposit

1. Navigate to the **Liquidity Vaults** section
2. Select a pool from the dropdown (e.g. XLM / AQUA)
3. Enter the amount for one token — the other will auto-calculate based on the current pool ratio
4. Set your slippage tolerance (default: 0.5%)
5. Click **Deposit** and confirm in your wallet

## What Happens On-Chain

```mermaid
sequenceDiagram
    participant User
    participant Contract
    participant Aquarius Pool

    User->>Contract: vault_deposit(pool_id, amount_a, amount_b)
    Contract->>Contract: Transfer both tokens from user
    Contract->>Aquarius Pool: Deposit tokens, receive LP shares
    Contract->>Contract: Track user's LP position
```

## Slippage Protection

Pool ratios can shift between when you preview and when your transaction executes. Slippage tolerance defines the maximum acceptable difference:

| Setting  | Risk Level | When to Use                       |
| -------- | ---------- | --------------------------------- |
| 0.5%     | Low        | Normal conditions                 |
| 1.0%     | Medium     | Moderate volatility               |
| 2.0-5.0% | Higher     | High volatility or large deposits |

If the actual price moves beyond your tolerance, the transaction is rejected and your tokens are returned.

## Minimum Deposit

Each pool has a minimum deposit amount determined by the pool's current state. Very small deposits may be rejected if they would produce fewer LP shares than the minimum threshold.