> For the complete documentation index, see [llms.txt](https://trustswap.gitbook.io/trustswap/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://trustswap.gitbook.io/trustswap/about/faq/liquidity-locks.md).

# Liquidity Locks

Frequently asked questions about TrustSwap's Liquidity Locks

## What are TrustSwap Liquidity Locks?

Liquidity Locks are used by projects to avoid rug pulls by setting time-released vaults that return tokens to investors upon specific parameters such as specific dates and milestones.

Liquidity is crucial for any market and is an important factor for any trader or investor. By locking liquidity pair (LP) tokens in [Team Finance](https://www.team.finance/), projects can help their communities feel more confident in the long term tradability of the tokens and alleviate fears of the dreaded ‘Rug Pull’ scam.

## Why are Liquidity Locks important?

Let’s first understand how liquidity pools work.

Projects raise capital and use a percentage to supply the Decentralized exchange (DEX) pool with liquidity in one or more token pairs. In return, the DEX provides for each token pair a Liquidity Pool token that represents shares in that pool. Those tokens are also used to remove the liquidity from the DEX.

*Via the Liquidity Locks wizard, projects can lock these liquidity tokens by sending them into a time-released vault that will only return the Liquidity Pool tokens at the configured date.*\
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During the lock period, the project cannot pull the liquidity from the exchange and dump those tokens on the holders causing the token price to drop near $0.

The vesting schedule is published with a transparent view of release dates and amounts to investors, as a proof of trust and security.

## How can I lock my Liquidity tokens?

Projects can use Liquidity Locks after they supply the liquidity of the pair(s) to the DEX. Projects access [Team Finance Liquidity Locks](https://www.team.finance/liquidity-locks) and follow this simple procedure:

1. Under “Create New Lock”, select  the appropriate chain
2. In step 2 select: “Liquidity Tokens” and follow the steps

Make sure you are connected with a compatible wallet such as Metamask to complete the required steps.