> For the complete documentation index, see [llms.txt](https://degen-games-2.gitbook.io/degen-games-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://degen-games-2.gitbook.io/degen-games-docs/how-the-game-works/burned-liquidity.md).

# Burned Liquidity

Locked liquidity can unlock. Burned liquidity can't. Every Degen Games coin burns its LP at graduation.

**Fill the curve. Burn the LP.**

Most rug pulls work the same way: someone removes the liquidity. On a graduated Degen Games coin, nobody can. It isn't a promise not to. The liquidity position sits at the burn address, and there's no function anywhere that can bring it back.

## Burned vs. locked

|                        | Locked LP                                                   | Burned LP (Degen Games)                   |
| ---------------------- | ----------------------------------------------------------- | ----------------------------------------- |
| Who holds the position | A locker contract or a third-party locking service          | The burn address `0x…dEaD`                |
| Can it be withdrawn?   | After the lock expires, or through an admin or upgrade path | **Never**                                 |
| Depends on trusting    | The locker's code, its owner and its expiry date            | Nothing. Nobody holds a key to `0x…dEaD`. |
| Visible on-chain       | Yes                                                         | Yes                                       |

A lock is only as good as the contract and the people behind it. A burn has no owner to trust.

## How it works

1. When a coin graduates, its entire raise plus the reserved tokens become a single **full-range Uniswap v4 position**.
2. That position is sent straight to the burn address:

```
0x000000000000000000000000000000000000dEaD
```

3. Any held-back tokens not needed to seed the pool at the curve's final price, about 8% of supply, are burned in the same step.

There's no unlock date, no waiting period and no privileged wallet. Neither the creator nor Degen Games can reach it.

## Trading fees still work

The pool's own Uniswap LP fee is set to **0%**, so the burned position earns nothing for anyone. The 1% trading fee and any creator tax are charged by the Degen Games **hook** on every swap and split exactly as they were on the curve. Creators keep earning after graduation, and the platform buyback keeps running. See [Fees](/degen-games-docs/how-the-game-works/fees.md).

## Check it yourself

Every graduation emits a `PoolGraduated` event from the launch factory with the coin's `positionId`. Look that position up on the chain's Uniswap v4 **PositionManager** and check its owner:

```solidity
ownerOf(positionId) == 0x000000000000000000000000000000000000dEaD
```

Read the PositionManager address with `positionManager()` on the [launch factory](/degen-games-docs/developers/contracts.md).

{% hint style="info" %}
Burned liquidity removes the rug-pull risk from the pool. It doesn't make a coin safe to buy. Prices can still fall, and holders can still sell. See [Risk Disclosures](/degen-games-docs/safety/risk-disclosures.md).
{% endhint %}


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