Liquidity providers can withdraw their liquidity from the perpetual liquidity pool (and return the LP tokens) so long as they pay the relevant withdrawal fees, and sufficient funds are available.
A fee may apply for withdrawing liquidity / redeeming LP tokens.
Withdrawal Limits
The amount you can withdraw is dependent on the liquidity utilization rate.
If the funds are currently being utilized as liquidity, there may be insufficient available funds in the perpetual liquidity pool for you to withdraw.
When the utilization rate of the perpetual liquidity pool increases, so does the borrow fee for the traders. As borrow fees gradually increase, it encourages traders to close their positions, or funding rate arbitrageurs to take over the pool's positions, freeing up liquidity.
Once the pool's liquidity are freed up, more funds will become available for withdrawal.
Withdrawal Speed
Withdrawals take one block on Carbon, which is about 2 seconds.
To ensure the security of the perpetual liquidity pool, immediate withdrawal of assets is not permitted; As withdrawals are processed only at the end of each block, meaning that there will always be a waiting time of one block.
This protects the perpetual liquidity pool against sudden liquidity drains and prevents stakers from front-running PnL changes.
