> For the complete documentation index, see [llms.txt](https://docs.kim.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kim.exchange/protocol/amm-v4/v4-add-liquidity-concentrated.md).

# V4 Add Liquidity (concentrated)

V4 enables liquidity providers to concentrate their capital within specific price ranges, leading to increased liquidity at preferred prices.

To provide liquidity to V4, navigate to the **Earn** tab, select **Liquidity** and choose **V4:**

<figure><img src="/files/xZ1iTWnErR64SwmIfFh5" alt=""><figcaption></figcaption></figure>

1. Select a pair

<figure><img src="/files/6CY7HT0HBA77nPFMyAi4" alt=""><figcaption></figcaption></figure>

Also, check if the pair is incentivized with market maker rewards (V4 manual) which serve as an additional, separate layer of rewards on top of the LP trading fees.

<figure><img src="/files/tNsfZ79CdcC8qPbATe7U" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
Unlike regular farms, Market Maker incentives are distributed via Merkl, which checks onchain data for incentivized pools using an offchain script.

These rewards are given out every **6 hours**, depending on how many tokens you've earned and the fees your position has collected during that time. Therefore, the narrower the range, the higher the market maker's rewards.
{% endhint %}

*The exact distribution formula for market maker rewards:*

<figure><img src="/files/RmSx9ZshN5hvfYQrLZG1" alt=""><figcaption></figcaption></figure>

For more specific information about how the mechanism works, you can refer to [Merkl documentation](https://docs.angle.money/merkl/lp-guide).

2. Select a mode

The mode you choose depends on the specific utility you seek:

* Manual mode is tailored for experienced liquidity providers, granting them control over the price ranges of the liquidity they provide
* Auto mode employs focused liquidity management strategies, handling the intricate task of adjusting price ranges for users

In auto mode users can select a Automated Liquidity Management provider and select a strategy.

<div align="left"><figure><img src="/files/vYK9FlVwrtXqivSM2JOq" alt=""><figcaption></figcaption></figure></div>

More details about the strategy can be seen on the right panel with details about the ALM and the selected strategy:

<figure><img src="/files/hiPWRNVYkvGfm5d1Xueh" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
When liquidity is provided through **manual** mode, positions are created as **LP only** and can earn trading fees and market maker rewards
{% endhint %}