> For the complete documentation index, see [llms.txt](https://lixir-finance.gitbook.io/lixir-doc/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://lixir-finance.gitbook.io/lixir-doc/resources/faq.md).

# FAQ

**Q: Why do I need Lixir to actively manage my liquidity?**

A: The short answer is that concentrated liquidity provision through DEXs like Uniswap V3 *can* be more capital efficient than liquidity provision through CFMMs *if* done right, which means liquidity providers enjoy higher APYs. The long answer can be found [here](/lixir-doc/the-case-for-lixir.md).

**Q: Are Lixir's vaults audited?**

A: Yes, we have been [audited by CertiK and Haechi](/lixir-doc/resources/security/audits.md).

**Q: Do I risk incurring Impermanent Loss?**

A: Yes, you still risk incurring [Impermanent Loss](/lixir-doc/resources/risks/vault-risk/impermanent-loss.md). Our strategy attempts to optimize profits, but in periods of high volatility the loss can still be significant. $LIX farming rewards are also intended to make up for any losses caused by this.