Remove Liquidity on Arc

What you actually receive

Burning LP tokens destroys a claim on the pool and returns the underlying assets in the same proportion the pool holds them. The arithmetic is a single division: your share of each reserve is reserve × LP burned ÷ LP total supply. Burn 10% of the LP and you receive 10% of the token reserve and 10% of the USDC reserve, in one transaction, straight to your wallet.

Trading fees are already inside those numbers. Every swap leaves 0.30% of its input in the pool, which grows both reserves, and both reserves are exactly what your LP tokens are a claim on. So the amounts on this page are larger than the share of the pool you originally funded — that difference is your fee income, realised at the moment of withdrawal. On Uniswap V2 there is nothing to claim separately and no claim function to call; fee collection and withdrawal are the same action. (V3 works differently: fees are tracked per position and must be collected, which is one more reason launches here use V2.)

Two honest limits on the preview. It is computed from the reserves as they are right now, so any swap that lands before yours changes it slightly — the minimums are what protect you there. And it cannot tell you what you paid for the position, because a V2 pool keeps no per-provider record. That is why the comparison panel above asks you for your deposit instead of inventing one.

Partial exit or full exit

A withdrawal is always pro-rata — both assets together — but it does not have to be all of it. Removing a percentage keeps the rest of the position working, which is normally what you want when the reason for withdrawing is recovering capital rather than leaving the market entirely.

One practical point on cost: the service fee is flat, so five small withdrawals cost five times one large withdrawal. Withdrawing a 200 USDC position in stages costs more in fees than the position earns in months. Batch the withdrawal the way you would batch anything else on Arc.

Why the mix differs from what you deposited

Even a pool that has never been traded hands you back a different mix than you put in, because the pool's whole job is to rebalance. When your token rises against USDC, arbitrageurs buy it out of the pool and leave USDC behind, so you withdraw more USDC and fewer tokens than you deposited. When it falls, the opposite happens: you get more tokens and less USDC, because the pool was accumulating the asset on the way down.

That rebalancing is the mechanical form of impermanent loss, and it is why the dollar value of a withdrawal can look disappointing even when the pool has been busy and the fees are real. It is also why the comparison panel above nets the two effects together: fees earned, minus divergence, versus a plain hold. There is no way to withdraw only the asset you want — if you need USDC specifically, withdraw first and then swap, accepting that the swap pays 0.30% to the pool you are a part-owner of.

Is removing liquidity a rug pull?

No, and the distinction matters. Removing your own liquidity is ordinary position management: you took a risk, you are taking it off, and in doing so you are realising whatever the pool earned you. Every liquidity provider on every chain does it, and a pool whose creators committed capital permanently would be an unusual pool rather than the trustworthy baseline.

A rug pull is the same transaction performed against holders who were told the opposite. If a project says its liquidity is locked for twelve months and the LP tokens are then withdrawn in month two, that is a rug — not because withdrawing is wrong, but because the withdrawal contradicted a verifiable commitment. This is exactly why lockers exist: a lock removes the ability to withdraw, so a buyer does not have to judge intentions, only read a timestamp.

Practical consequences for anyone running a launch. First, say what you intend: "unlocked, and I may reduce after the first month" is honest and survivable; saying nothing and then withdrawing is read as an exit whichever way you meant it. Second, if you have locked your LP in the Liquidity Locker, this tool will tell you that the position is not in your wallet instead of letting you build a transaction that cannot succeed. Third, if the LP tokens are yours and unlocked, you can withdraw whenever you like — just do not call it something other than what it is.