# Auto Liquidity ## Auto Liquidity One of the biggest issues cryptocurrencies face is the acquiring of liquidity. Most liquidity in the current phase of DeFi is done through farming. Users provide their tokens as liquidity in exchange for a percentage of some of the exchanges trading fees for the pair the user provides. The model fails once users pull their liquidity after rewards are no longer attractive. With Karma, this risk is mitigated by the auto liquidity feature of the token smart contract. \ \ As mentioned earlier, the Karma token smart contract charges a fee on every transaction. It then deposits the realized fees in the liquidity pool indefinitely. It also purchases an equal value to BNB using its in-built analytic algorithm to determine the better option at the particular time, and adds the funds to the locked liquidity pool. The aim is to ensure market solvency as well as maintain a rising price floor by default. --- # 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://whitepaper.karmatoken.org/karmas-features/auto-liquidity.md?ask= ``` 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.