> For the complete documentation index, see [llms.txt](https://docs.lighter.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lighter.xyz/trading/liquidations-and-llp-insurance-fund/llp-strategies.md).

# LLP Strategies

LLP funds are held within a single account, which acts as the counterparty to all LLP trading and liquidations. For additional details on Liquidations and ADL, please refer to the [relevant section](https://docs.lighter.xyz/~/revisions/oWY7zM9pmF1WoGayT19g/trading/liquidations-and-llp-insurance-fund) of the documentation.

Under the existing structure, **Auto-Deleverage (ADL) events are fully backstopped by LLP,** meaning that liquidity providers absorb the associated risk.

LLP Strategies allow collateral to be allocated across distinct strategy buckets (that now includes RWAs, too). Each market is assigned to a specific strategy. From a system perspective, each strategy behaves similarly to a segregated collateral shard (comparable to a sub-account for risk purposes). However, strategies are not separate accounts — all positions remain under the LLP — but risk and losses are isolated at the strategy level.

For example, LLP may allocate:

* One strategy for Crypto Perpetuals
* One strategy for FX
* One strategy for Equities / RWAs

The exact market-to-strategy mappings will be communicated separately.

Under this framework, if a given strategy has $1M in allocated collateral, its maximum loss exposure is limited to that $1M. If the allocated collateral is fully depleted, the strategy would be subject to ADL, while collateral allocated to other strategies remains unaffected.

### RWAs & LLP Strategies

The Real World Assets (RWA) perpetual markets are now subject to standard liquidation fees, consistent with all other markets, as LLP serves as the primary protocol liquidity provider.