# 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. --- # 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://lixir-finance.gitbook.io/lixir-doc/resources/faq.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.