P12-L05 · P12 · P12-M02
Document pool funding and protocol-specific withdrawal controls
Prerequisites: P12-L04
Learning objectives
- Document pool funding and protocol-specific withdrawal controls
- Separate pool reserves, LP participation and withdrawal permissions in an offline disclosure.
Why this matters
“Liquidity locked” can obscure which LP interest is controlled, when it can be withdrawn and whether the entire pool or only one position is described.
Explanation
Record exact pool type, asset pair, reserve accounting and participation instrument. Different protocols represent liquidity differently; do not generalize a fungible LP-token mechanism to every position model. In the hypothetical v2-style example, the LP share is a participation claim and withdrawal redeems underlying assets according to the mechanism. Pool reserves and a creator’s LP share are different quantities.
A withdrawal-control disclosure must identify the participation holder, custody/lock mechanism, amount covered, release conditions and all relevant administrative paths. A lock of part of a creator’s LP interest does not lock the whole pool; other participants can retain withdrawal rights. A timer without inspectable implementation and funded balance is a planned restriction only.
Use quantities to expose scope without implying market support. Reserves can change with trades, additions and withdrawals. A paper proportional calculation is useful for accounting reasoning, but it is not a current redemption quote or a promise of available liquidity. No funds are supplied or withdrawn in this lesson.
Key terms
Reserve: underlying asset balance in a pool.
LP share: participation measure, distinct from underlying reserves.
Covered amount: portion subject to a stated restriction.
Withdrawal control: capability and conditions for redeeming participation.
Historical example
ILLUSTRATIVE v2-style pool:100 LP units total,1,000 Cedar and 20 quote units reserves. Creator holds30 LP units; proposed paper lock covers20 of those until timeT, leaving10 uncovered. Other participants hold70. Ignoring fees and state changes,30% corresponds to 300 Cedar and 6 quote units; no actual pool exists.
Visual specifications
LP structure diagram showing100 total LP,30 creator,20 proposed covered,10 creator uncovered and 70 others. Keep underlying reserves in a separate box; no “all locked” badge.
Caption: Fictional partial LPrestriction; reserve quantity and lock coverage are separate.
SPECIFICATION_ONLY — the rendered visual has not been produced or independently reviewed.
What the evidence proves
The fictional arithmetic distinguishes total pool, creator participation and proposed lock coverage. Covered20 LP units equal20% of total andtwo-thirds of the creator’s30 LP units.
What the evidence does not prove
It proves no deposited liquidity, actual lock enforcement, current reserves, withdrawal availability, safety or price support. A20% coverage statement cannot become “100% pool locked.”
Common mistakes
Calling creator LP share the whole pool; using reserve balances as lock evidence; omitting uncovered LP; treating a hypothetical redemption amount as a live quote.
Practical exercise
Compute creator share, proposed total-pool coverage and uncovered share. Draft a complete lock disclosure and reject “all liquidity is locked.”
Show worked correction
Creator=30/100=30%; proposed covered=20/100=20%ofpool LP participation; creator covered fraction=20/30=66.67% approximately; creator uncovered=10/100=10% of total, while other participants retain70%. Disclosure: “Illustrative v2-style model proposes a restriction on20 of 100 LP units untilT;10 creator units and 70 other units are outside this restriction. No contract, funded lock balance, admin path or current reserve state is verified.” The300/6calculation is hypothetical proportional accounting only.
Checklist
- Name protocol-specific participation model.
- Separate reserves, total LP and creator LP.
- Quantify restriction coverage and residual withdrawals.
- Qualify lock implementation and observation time.
Summary
A liquidity disclosure names the exact position and restriction scope rather than promising a locked or safe market.
Summary
- LP interest is not the same quantity as reserves.
- Partial restriction does not lock the entire pool.
- Hypothetical accounting is not a live redemption quote.
Next lesson
P12-L06
Tools
Use the named ZECOIN tool only as an evidence-reading context. This lesson creates no tool output, account session or entitlement. Offline exercise; do not sign, deploy, approve or fund anything.
Sources & claim boundaries
- POOL: Uniswap v2 pools — LP tokens represent pool participation; withdrawal mechanism is separate from motive or fraud. Boundary: Mechanism documentation only; original illustrative values are stipulated, not observations. Historical records have separately frozen provenance and explicit collection gaps.
Evidence classifications
ILLUSTRATIVE — entirely fictional offline inputs; no current observation.
Observation date
null — no real observation
Content version
1
Review date
null
Review status
needs_review
Visual specifications
P12-L05-V01
Document pool funding and protocol-specific withdrawal controls
Fictional partial LPrestriction; reserve quantity and lock coverage are separate.
LP structure diagram showing100 total LP,30 creator,20 proposed covered,10 creator uncovered and 70 others. Keep underlying reserves in a separate box; no “all locked” badge.
LP structure diagram showing100 total LP,30 creator,20 proposed covered,10 creator uncovered and 70 others. Keep underlying reserves in a separate box; no “all locked” badge.
Stack observations, assumptions, gaps and conclusion at 390 px; retain full IDs and a complete text equivalent. Any wide table scrolls locally.
Prose may follow RTL; IDs, quantities and time axes remain LTR. Preserve dependency direction.
P12-L05-ILLUSTRATIVE-v1
Sources & claim boundaries
POOL · PRIMARY_DOCUMENTATION
Uniswap v2 pools
- Supported claim
- LP tokens represent pool participation; withdrawal mechanism is separate from motive or fraud.
- Verification boundary
- Mechanism documentation only; original illustrative values are stipulated, not observations. Historical records have separately frozen provenance and explicit collection gaps.
- Checked at
- 2026-10-02
https://developers.uniswap.org/docs/protocols/v2/concepts/pools
Dataset provenance
id: P12-L05-ILLUSTRATIVE-v1
dataStatus: ILLUSTRATIVE
observedAt: null
source: Original offline scenario in realOrHistoricalExample
scope: Fictional stipulated labels and values. No wallet, deployment, transaction, token launch or production observation.