> For the complete documentation index, see [llms.txt](https://docs.communityfinance.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.communityfinance.io/stableswap-details/asset-liability-management.md).

# Asset Liability Management

The key concept underpinning Community Market sustainable design is asset liability management (ALM).

Most DeFi protocols today do not use the concept of liability, which makes it so that when you invest in a liquidity pool, the total asset composition of your investment can be significantly different when you withdraw from the pool.

This is very common on double-paired LPs. In this classic system, you are given "LP tokens" representing a share of the liquidity pool. This is a contributing factor to impermanent loss.

With the asset-liability system, what matters is the size of your investment and not the share of the pool your investment represents. The system keeps track of your investment liability, and you always own that amount at withdrawal.

The introduction of Asset Liability Management in the Community Market allows each pool to grow organically based on its natural supply and demand.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## 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, and the optional `goal` query parameter:

```
GET https://docs.communityfinance.io/stableswap-details/asset-liability-management.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

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.
